Document:

exv10w1

	 	 	 	 	 

Exhibit 10.1

EXCHANGE AGREEMENT

This Exchange Agreement (this “Agreement”) is entered into by and between Diodes
Incorporated (the “Company”) and [REDACTED] (“Holder” and, collectively with the
Company, the “Parties”), effective as of September 28, 2009. The Company and Holder hereby
agree, covenant, represent and warrant as follows:

Article I. The Exchange

Section 1.01 Exchange of Shares for Notes.

     The Company will issue 976,424 shares (the “Shares”) of the Company’s common stock,
par value $0.662/3

 per share, CUSIP 254543101 (the “Common Stock”) in exchange for
$19,837,000 aggregate principal amount of the Company’s outstanding 2.25% Convertible Senior Notes
Due 2026, CUSIP 254543AA9 (the “Notes”) held by Holder (the “Exchange”) in the form
of beneficial interests in a global note held by the Depository Trust Company (“DTC”).

Section 1.02 Delivery of Notes.

     On the same date as this Agreement (the “Closing”), Holder shall electronically
transfer the Notes to an account at DTC identified by the Company as participant account number
2145.

Section 1.03 Issuance of Shares.

     On Closing the Company shall deliver:

The Shares through DTC to the account identified below:

[REDACTED]

DTC [REDACTED]

For further credit to: [REDACTED]

Contact: [REDACTED]

Section 1.04 Payment of Interest.

     The Company and Holder agree that, except as expressly provided in this Section 1.04, the
issuance of Shares in the Exchange constitutes satisfaction in full of any and all amounts
(including without limitation principal, interest and any other fees) owed by the Company to Holder
in connection with the Notes. On Closing, the Company shall deliver to Holder $219,446.81 in cash
representing all accrued but unpaid interest on the Notes by wire transfer to the account
identified below:

Bank: Citibank, N.A.

111 Wall Street

New York, NY 10043

ABA No.: 021000089

Account No.: [REDACTED]

Acct Name: [REDACTED]

Further Credit: [REDACTED]

ATTN: [REDACTED]

Article II. Representations and Warranties

Section 2.01 Registration.

     The Parties each hereby acknowledge that, subject to the accuracy of the representations of
the other Party in this Agreement, the Shares are being issued without registration under the
Securities Act of 1933, as amended (the “Securities Act”), in reliance upon Section 3(a)(9)
thereof.

Section 2.02 Company Representations.

     The Company hereby represents as follows:

 

 

     (i) This Agreement has been duly and validly authorized, executed and delivered by the Company
and shall constitute the legal, valid and binding obligation of the Company enforceable against the
Company in accordance with its terms, except as such enforceability may be limited by general
principles of equity or to applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation and other similar laws relating to, or affecting generally, the enforcement of
applicable creditors’ rights and remedies.

     (ii) The execution, delivery and performance by the Company of this Agreement and the
consummation by the Company of the Exchange contemplated hereby will not (i) result in a violation
of the certificate of incorporation or bylaws of the Company, (ii) violate any material agreement
to which the Company is a party or by which the Company or any of its property or assets is bound,
or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including
federal and state securities laws) applicable to the Company, except for such violations which
would not, individually or in the aggregate, reasonably be expected to have a material adverse
effect on the business, assets, properties or condition (financial or otherwise) of the Company or
on the ability of the Company to perform its obligations hereunder.

     (iii) The execution, delivery and performance by the Company of this Agreement and the
consummation of the Exchange contemplated hereby require no order, license, consent, authorization
or approval of, or exemption by, or action by or in respect of, or notice to, or filing or
registration with, any governmental body, agency or official on the part of the Company.

     (iv) The Shares will be, when issued in accordance with this Agreement, duly issued,
fully-paid, non-assessable and freely transferable in accordance with the Securities Act.

     (v) Upon issuance thereof in accordance with the terms of this Agreement, the Shares shall not
constitute “restricted securities” as defined in Rule 144(a)(3) under the Securities Act, any
certificate(s) representing the Shares shall not bear any restrictive legend, and no “stop
transfer” or similar order shall be maintained against the Shares with the Company’s transfer
agent.

     (vi) The Company has not paid and will not pay any commission or similar remuneration to any
person in connection with the solicitation or effectuation of the Exchange.

     (vii) The Company has not engaged any broker, finder or other entity acting under the
authority of the Company or any of its affiliates that is entitled to any commission or other fee
in connection with the Exchange.

     (viii) The Company has not provided to Holder any material information that has not been
publicly disclosed concerning the Company, its subsidiaries and affiliates, including, but not
limited to, the general business, plans and prospects of the Company, its subsidiaries and
affiliates as well as possible future financings and other transactions or changes in the Company’s
capital structure (the “Material Non-Public Information”) nor any other information which,
according to applicable law, rule or regulation, should have been disclosed publicly by the Company
but which has not been so disclosed, other than with respect to the transactions contemplated by
this Agreement. The Company acknowledges that Holder has not requested to be provided with any
Material Non-Public Information or any such other information referred to in the immediately
preceding sentence.

Section 2.03 Holder Representations.

     Holder hereby represents as follows:

     (i) It is the sole legal and beneficial owner of the Notes to be exchanged by Holder hereunder
and the delivery of the Notes in accordance with this Agreement will transfer ownership of the
Notes to the Company free and clear of any liens, claims, interests, charges or other encumbrances.

     (ii) It has not previously sold, assigned, conveyed, transferred or otherwise disposed of, in
whole or in part, the Notes to be exchanged by Holder hereunder, nor has Holder entered into any
agreement to sell, assign, convey, transfer or otherwise dispose of, in whole or in part, such
Notes.

     (iii) This Agreement has been duly and validly authorized, executed and delivered by Holder
and shall constitute the legal, valid and binding obligation of Holder enforceable against Holder
in accordance with its terms, except as such enforceability may be limited by general principles of
equity or to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other
similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights
and remedies.

     (iv) The execution, delivery and performance by Holder of this Agreement and the consummation
by Holder of the Exchange contemplated hereby will not (i) result in a violation of the
organizational documents of Holder or (ii) result in a violation of any law, rule, regulation,
order, judgment or decree (including federal and state securities laws) applicable to Holder,
except for such conflicts, defaults, rights or violations which would not, individually or in the
aggregate, reasonably be expected to have a material adverse effect on the ability of Holder to
perform its obligations hereunder.

 

 

     (v) The execution, delivery and performance by Holder of this Agreement and the consummation
of the Exchange contemplated hereby require no order, license, consent, authorization or approval
of, or exemption by, or action by or in respect of, or notice to, or filing or registration with,
any governmental body, agency or official on the part of Holder.

     (vi) Holder, together with its affiliates, (i) immediately after giving effect to the Exchange
and the issuance of the Shares, will not beneficially own in excess of 9.99% of the number of
shares of Common Stock outstanding, and (ii) has not and will not have beneficially owned in excess
of 9.99% of the number of shares of Common Stock outstanding at any time during the ninety (90) day
period ending on the date of the Closing. For purposes of the foregoing sentence, beneficial
ownership shall be calculated in accordance with Section 13(d) of the Securities Exchange Act of
1934.

     (vii) The Notes do not constitute “restricted securities” as defined in Rule 144(a)(3) under
the Securities Act.

     (viii) Holder has not engaged any broker, finder or other entity acting under the authority of
Holder or any of its affiliates that is entitled to any commission or other fee in connection with
the Exchange.

     (ix) Holder has sufficient experience in business, financial and investment matters to be able
to evaluate the risks involved in, and to make an informed investment decision with respect to, the
Exchange and receipt of the Shares, and Holder acknowledges that (i) the Company makes no
representation regarding the value of the Notes or the Shares and (ii) Holder has independently and
without reliance upon the Company made its own analysis and decision to enter into the Exchange and
exchange the Notes for the Shares.

     (x) Holder acquired the Notes as principal and not for the account of any other person.

Section 2.04 Conditions to Parties’ Obligations.

     The obligations of each Party hereunder at the Closing are subject to the satisfaction of each
of the following conditions, provided that these conditions are for the sole benefit of such Party
and may be waived by such Party at any time in its sole discretion by providing the other Party
with prior written notice thereof:

     (i) The other Party shall have executed this Agreement and delivered the same to such Party.

     (ii) The representations and warranties of the other Party in this Agreement shall be true and
correct as of the date when made and as of the date of the Closing as though made at that time.

Article III. Miscellaneous

Section 3.01 Governing Law.

     This Agreement shall be governed by, and construed in accordance with, the laws of the State
of New York, without giving effect to the principles of conflicts of law whether of the State of
New York or any other jurisdiction. Each Party hereby irrevocably submits to the exclusive
jurisdiction of the state and federal courts sitting in The City of New York, Borough of Manhattan,
for the adjudication of any dispute hereunder or in connection herewith or with any transaction
contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in
any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of
any such court, that such suit, action or proceeding is brought in an inconvenient forum or that
the venue of such suit, action or proceeding is improper. Each Party hereby irrevocably waives
personal service of process and consents to process being served in any such suit, action or
proceeding by mailing a copy thereof to such Party at the address for such notices to it under this
Agreement and agrees that such service shall constitute good and sufficient service of process and
notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve
process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY
HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN
CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

Section 3.02 Notices.

     All communications in connection with this Agreement shall be in writing and shall be mailed
by first class mail, postage prepaid, or delivered by courier, personal delivery or confirmed
facsimile transmission.

 

 

     Communications to the Company may be made to the following address, telephone and facsimile:

	 	 	 
	Name:

	 	Diodes Incorporated
	Attention:

	 	Rick F. Yeh
	Address:

	 	15660 N. Dallas Parkway
	 

	 	Suite 850
	 

	 	Dallas, Texas 75248, USA
	 
	 	 
	Telephone:

	 	972-385-2829
	Facsimile:

	 	805-381-3841

     Communications to the Holder may be made to the following address, telephone and facsimile:

	 	 	 
	Name:

	 	[REDACTED]
	ATTN:

	 	[REDACTED]
	Address:

	 	[REDACTED]
	 
	 	 
	Telephone:

	 	[REDACTED]
	Cell phone:

	 	[REDACTED]
	Facsimile:

	 	[REDACTED]

     Amendment and Waiver.

     This Agreement may be amended and the observance of any term of this Agreement may be waived,
provided that such amendment or waiver is made in writing and signed by both Parties.

Section 3.03 Severability.

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

Section 3.04 Entire Agreement.

     This Agreement constitutes the entire agreement among the parties pertaining to the exchange
of securities as contemplated herein and supersedes the Parties’ prior agreements, understandings,
negotiations and discussions, whether oral or written, on such matters.

Section 3.05 Fees and Expenses.

     Except as otherwise set forth in this Agreement, each Party shall pay the fees and expenses of
its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by
such party incident to the negotiation, preparation, execution, delivery and performance of this
Agreement.

IN WITNESS WHEREOF, each of the parties has caused this Agreement to be duly executed on its behalf
as of the date first written above.

	 	 	 	 	 
	COMPANY: DIODES INCORPORATED

 	 	 
	By:  	 	 	 
	 	Richard D. White 	 	 
	 	Title:  	Chief Financial Officer, Secretary and Treasurer 	 	 
	 
	HOLDER: [REDACTED]

 	 	 
	By:  	 	 	 
	 	[REDACTED] 	 	 
	 	Title:  	Vice President, [REDACTED]exv4w1

Exhibit 4.1

NINTH SUPPLEMENTAL INDENTURE

     NINTH SUPPLEMENTAL INDENTURE, dated as of October 1, 2009 (this “Supplemental
Indenture”), by and between PROLOGIS (formerly ProLogis Trust and prior thereto Security
Capital Industrial Trust), a real estate investment trust organized under the laws of the State of
Maryland having its principal office at 4545 Airport Way, Denver, Colorado 80239 (the
“Company”), and U.S. BANK NATIONAL ASSOCIATION (as successor in interest to State Street
Bank and Trust Company), having a corporate trust office at Corporate Trust Services, 100 Wall
Street, Suite 1600, New York, New York 10005, as successor Trustee (in such capacity, the
“Trustee”) under the Base Indenture (defined below). Section 1.2 of this Supplemental
Indenture sets forth the definitions of certain capitalized terms used in this Supplemental
Indenture.

RECITALS OF THE COMPANY

     WHEREAS, the Company and the Trustee have heretofore entered into an Indenture, dated as of
March 1, 1995, (the “Original Indenture”) as amended by a First Supplemental Indenture,
dated as of February 9, 2005 (the “First Supplemental Indenture”), a Second Supplemental
Indenture, dated as of November 2, 2005 (the “Second Supplemental Indenture”), a Third
Supplemental Indenture, dated as of November 2, 2005, a Fourth Supplemental Indenture, dated as of
March 26, 2007, a Fifth Supplemental Indenture, dated as of November 8, 2007, a Sixth Supplemental
Indenture, dated as of May 7, 2008, a Seventh Supplemental Indenture, dated as of May 7, 2008 (the
“Seventh Supplemental Indenture”), and an Eighth Supplemental Indenture, dated as of August
14, 2009 (as so supplemented, the “Base Indenture”), providing for the issuance by the
Company from time to time of its senior debt securities evidencing its unsubordinated indebtedness.

     WHEREAS, Section 902 of the Base Indenture provides for the Company and the Trustee, with the
consent of the Holders of not less than a majority in principal amount of all Outstanding
Securities affected by such supplemental indenture, to enter into an indenture supplemental to the
Base Indenture.

     WHEREAS, the Company has solicited the consent of Holders of its 5.25% Senior Notes due 2010;
5.50% Senior Notes due 2012; 5.50% Senior Notes due 2013; 7.81% Senior Notes due 2015; 9.34% Senior
Notes due 2015; 5.625% Senior Notes due 2015; 5.75% Senior Notes due 2016; 8.65% Senior Notes due
2016; 5.625% Senior Notes due 2016; 7.625% Senior Notes due 2017; and 6.625% Senior Notes due 2018
(collectively, the “Consent Securities”) to the amendments effected by this Supplemental
Indenture.

     WHEREAS, the Holders of at least a majority in aggregate principal amount of: (i) the
outstanding Consent Securities voting as a single class; (ii) the outstanding Consent Securities
that are subject to the Second Supplemental Indenture voting as a single class; and (iii) the
outstanding Consent Securities that are subject to the Seventh Supplemental Indenture voting as a
single class have consented to the amendments effected by this Supplemental Indenture.

     WHEREAS, the Board of Trustees of the Company has duly adopted resolutions authorizing the
Company to execute and deliver this Supplemental Indenture.

 

 

     WHEREAS, all things necessary to make the Base Indenture, as hereby modified, a valid
agreement of the Company, in accordance with its terms, have been done.

     NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE WITNESSETH:

     For and in consideration of the premises and of the covenants contained herein and in the Base
Indenture, the Company and the Trustee mutually covenant and agree, for the equal and proportionate
benefit of all Holders of (i) the Consent Securities and (ii) Securities issued on or after the
date of this Supplemental Indenture (unless, with respect to Securities referenced in the
immediately preceding clause (ii), otherwise provided in the Officers’ Certificate or supplemental
indenture authorizing any such series of Securities), as follows:

ARTICLE ONE

RELATION TO BASE INDENTURE; DEFINITIONS

     Section 1.1. Relation to Base Indenture. This Supplemental Indenture constitutes an
integral part of the Base Indenture.

     Section 1.2. Definitions. For all purposes of this Supplemental Indenture, except as
otherwise expressly provided for or unless the context otherwise requires:

          (a) Capitalized terms used but not defined herein shall have the respective meanings
assigned to them in the Base Indenture.

          (b) All references herein to Articles and Sections, unless otherwise specified, refer
to the corresponding Articles and Sections of this Supplemental Indenture.

          (c) Pursuant to Section 902 of the Base Indenture, the following terms and definitions
are hereby added or, to the extent that any such term exists in the Base Indenture, amends
and restates the definition of such term:

     “Annual Service Charge” as of any date means the maximum amount which is
payable in any period for interest on, and original issue discount of, Debt of the
Company and its Subsidiaries and the amount of dividends which are payable in respect of
any Disqualified Stock.

     “Consolidated Income Available for Debt Service” for any period means
Earnings from Operations of the Company and its Subsidiaries plus amounts which have
been deducted, and minus amounts which have been added, for the following (without
duplication): (a) interest on Debt of the Company and its Subsidiaries, (b) provision
for taxes of the Company and its Subsidiaries based on income, (c) amortization of debt
discount, (d) provisions for unrealized gains and losses, depreciation and amortization,
and the effect of any other non-cash items, (e) extraordinary, non-recurring and other
unusual items (including, without limitation, any costs and fees incurred in connection
with any debt financing or amendments thereto, any acquisition, disposition,
recapitalization or similar transaction (regardless of whether
such transaction is completed)), (f) the effect of any noncash charge resulting
from a change in accounting principles in determining Earnings from Operations for such

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period, (g) amortization of deferred charges and (h) any of the items described in
clauses (d) and (e) above that were included in Earnings from Operations on account of
an Equity Investee.

     “Debt” of the Company or any Subsidiary means any indebtedness of the
Company or any Subsidiary, excluding any accrued expense or trade payable, whether or
not contingent, in respect of (i) borrowed money evidenced by bonds, notes, debentures
or similar instruments, (ii) indebtedness secured by any mortgage, pledge, lien, charge,
encumbrance or any security interest existing on property owned by the Company or any
Subsidiary, (iii) the reimbursement obligations, contingent or otherwise, in connection
with any letters of credit actually issued or amounts representing the balance deferred
and unpaid of the purchase price of any property or services, or all conditional sale
obligations or obligations under any title retention agreement, (iv) the principal
amount of all obligations of the Company or any Subsidiary with respect to redemption,
repayment or other repurchase of any Disqualified Stock or (v) any lease of property by
the Company or any Subsidiary as lessee which is reflected on the Company’s Consolidated
Balance Sheet as a capitalized lease in accordance with GAAP and to the extent, in the
case of items of indebtedness under (i) through (iii) above, that any such items (other
than letters of credit) would appear as a liability on the Company’s Consolidated
Balance Sheet in accordance with GAAP, and also includes, to the extent not otherwise
included, any obligation by the Company or any Subsidiary to be liable for, or to pay,
as obligor, guarantor or otherwise (other than for purposes of collection in the
ordinary course of business), Debt of another Person (other than the Company or any
Subsidiary).

     “Disqualified Stock” means, with respect to any Person, any Capital Stock
of such Person which by the terms of such Capital Stock (or by the terms of any security
into which it is convertible or for which it is exchangeable or exercisable), upon the
happening of any event or otherwise (i) matures or is mandatorily redeemable, pursuant
to a sinking fund obligation or otherwise, (ii) is convertible into or exchangeable or
exercisable for Debt or Disqualified Stock or (iii) is redeemable at the option of the
holder thereof, in whole or in part, in each case on or prior to the Stated Maturity of
the series of Debt Securities.

     “Earnings from Operations” for any period means net earnings excluding
gains and losses on sales of investments, net, as reflected in the financial statements
of the Company and its Subsidiaries for such period determined on a consolidated basis
in accordance with GAAP.

     “Encumbrance” means any mortgage, pledge, lien, charge, encumbrance or any
security interest existing on property owned by the Company or any Subsidiary securing
indebtedness for borrowed money, other than a Permitted Encumbrance.

     “Equity Investee” means any Person in which the Company or any Subsidiary
holds an ownership interest that is accounted for by the Company or a Subsidiary under
the equity method of accounting.

3

 

     “GAAP” means generally accepted accounting principles as used in the United
States applied on a consistent basis as in effect from time to time; provided, that
solely for purposes of calculating the financial covenants contained herein, “GAAP”
means generally accepted accounting principles as used in the United States on August
14, 2009 consistently applied.

     “Pari Passu Debt” means (i) any Debt of the Company or a Subsidiary that is
secured only by Encumbrances that also secure the Securities issued hereunder on an
equal and ratable basis and (ii) any series of Securities issued hereunder that is
secured only by Encumbrances that also secure all other series of Securities issued
hereunder on an equal and ratable basis.

     “Permitted Encumbrances” means leases, Encumbrances securing taxes,
assessments and similar charges, mechanics liens and other similar Encumbrances.

     “Refinancing Debt” means Debt issued in exchange for, or the net proceeds
of which are used to refinance or refund, then outstanding Debt (including the principal
amount, accrued interest and premium, if any, of such Debt plus any fees and expenses
incurred in connection with such refinancing); provided that (a) if such new Debt, or
the proceeds of such new Debt, are used to refinance or refund Debt that is subordinated
in right of payment to the Securities of any series, such new Debt shall only be
permitted if it is expressly made subordinate in right of payment to the Securities of
such series at least to the extent that the Debt to be refinanced is subordinated to the
Securities of such series and (b) such new Debt does not mature prior to the stated
maturity of the Debt to be refinanced or refunded, and the weighted average life of such
new Debt is at least equal to the remaining weighted average life of the Debt to be
refinanced or refunded.

     “Subsidiary” means, with respect to any Person, any corporation or other
entity of which a majority of (a) the voting power of the voting equity securities or
(b) in the case of a partnership or any other entity other than a corporation, the
outstanding equity interests of which are owned, directly or indirectly, by such Person.
For the purposes of this definition, “voting equity securities” means equity securities
having voting power for the election of directors, whether at all times or only so long
as no senior class of security has such voting power by reason of any contingency.

     “Total Assets” as of any date means the sum of (i) Undepreciated Real
Estate Assets and (ii) all other assets of the Company and its Subsidiaries determined
in accordance with GAAP (but excluding accounts receivable and intangibles).

     “Total Unencumbered Assets” means the sum of (i) Undepreciated Real Estate
Assets not subject to an Encumbrance and (ii) the value (determined in accordance
with GAAP) of all other assets (other than accounts receivable and intangibles) of
the Company and its Subsidiaries not subject to an Encumbrance.

     “Undepreciated Real Estate Assets” as of any date means the cost (original
cost plus capital improvements) of real estate assets of the Company and its
Subsidiaries

4

 

on such date, before depreciation, amortization and impairment charges
determined on a consolidated basis in accordance with GAAP.

     “Unsecured Debt” means Debt of the types described in clauses (i), (iii)
and (iv) of the definition thereof which is not secured by any mortgage, lien, charge,
pledge or security interest of any kind upon any of the properties of the Company or any
Subsidiary.

          (d) Pursuant to Section 902 of the Base Indenture, all definitions set forth in Section
1.2 of the Second Supplemental Indenture and Section 1.2 of the Seventh Supplemental
Indenture that relate to defined terms, the references to which are eliminated as a result
of the amended and restated definitions and covenants contained herein, are deleted in their
entirety.

ARTICLE TWO

COVENANTS AND DEFAULTS

     Section 2.1. Limitations on Incurrence of Debt. Pursuant to Section 902 of the Base
Indenture: (i) Section 1004 of the Base Indenture is hereby amended and restated in its entirety as
set forth below (which covenants shall replace and apply in lieu of the covenants set forth in
Section 1004 of the Original Indenture, Section 2.1 of the First Supplemental Indenture, Section
2.1 of the Second Supplemental Indenture and Section 2.1 of the Seventh Supplemental Indenture);
and (ii) the covenants set forth in Section 2.1 of the First Supplemental Indenture, Section 2.1 of
the Second Supplemental Indenture and Section 2.1 of the Seventh Supplemental Indenture are hereby
deleted in their entirety:

          (a) The Company will not, and will not permit any Subsidiary to, incur any Debt if,
immediately after giving effect to the incurrence of such additional Debt and the
application of the proceeds thereof, the aggregate principal amount of all outstanding Debt
of the Company and its Subsidiaries on a consolidated basis determined in accordance with
GAAP is greater than 60% of the sum of (without duplication) (i) Total Assets as of the end
of the calendar quarter covered in the Company’s Annual Report on Form 10-K or Quarterly
Report on Form 10-Q, as the case may be, most recently filed with the Commission (or, if
such filing is not permitted under the Exchange Act, with the Trustee) prior to the
incurrence of such additional Debt and (ii) the purchase price of any real estate assets or
mortgages receivable acquired, and the amount of any securities offering proceeds received
(to the extent such proceeds were not used to acquire real estate assets or mortgages
receivable or used to reduce Debt), by the Company or any Subsidiary since the end of such
calendar quarter, including those proceeds obtained in connection with the incurrence of
such additional Debt.

          (b) In addition to the limitation set forth in subsection (a) of this Section 1004, the
Company will not, and will not permit any Subsidiary to, incur any Debt if the ratio of
Consolidated Income Available for Debt Service to the Annual Service Charge for the four
consecutive fiscal quarters most recently ended prior to the date on which such additional
Debt is to be incurred shall have been less than 1.5, on a pro forma basis after giving
effect thereto and to the application of the proceeds therefrom, and calculated on

5

 

the
assumption that (i) such Debt and any other Debt incurred by the Company and its
Subsidiaries since the first day of such four-quarter period and the application of the
proceeds therefrom, including to refinance other Debt, had occurred at the beginning of such
period; (ii) the repayment or retirement of any other Debt by the Company and its
Subsidiaries since the first day of such four-quarter period had been incurred, repaid or
retired at the beginning of such period (except that, in making such computation, the amount
of Debt under any revolving credit facility shall be computed based upon the average daily
balance of such Debt during such period); (iii) in the case of Acquired Debt or Debt
incurred in connection with any acquisition since the first day of such four-quarter period,
the related acquisition had occurred as of the first day of such period with the appropriate
adjustments with respect to such acquisition being included in such pro forma calculation;
and (iv) in the case of any acquisition or disposition by the Company or its Subsidiaries of
any asset or group of assets since the first day of such four-quarter period, whether by
merger, stock purchase or sale, or asset purchase or sale, such acquisition or disposition
or any related repayment of Debt had occurred as of the first day of such period with the
appropriate adjustments with respect to such acquisition or disposition being included in
such pro forma calculation.

          (c) In addition to the limitation set forth in subsections (a) and (b) of this Section
1004, no Subsidiary may incur any Unsecured Debt; provided, however, that the Company or a
Subsidiary may acquire an entity that becomes a Subsidiary that has Unsecured Debt if the
incurrence of such Debt (including any guarantees of such Debt assumed by the Company or any
Subsidiary) was not intended to evade the foregoing restrictions and the incurrence of such
Debt (including any guarantees of such Debt assumed by the Company or any Subsidiary) would
otherwise be permitted under this Indenture.

          (d) In addition to the limitation set forth in subsections (a), (b) and (c) of this
Section 1004, the Company and its Subsidiaries may not at any time own Total Unencumbered
Assets equal to less than 150% of the aggregate outstanding principal amount of the
Unsecured Debt and Pari Passu Debt of the Company and its Subsidiaries on a consolidated
basis.

          (e) In addition to the limitation set forth in subsections (a), (b), (c) and (d) of
this Section 1004, the Company will not, and will not permit any Subsidiary to, incur any
Debt for borrowed money secured by any mortgage, lien, charge, pledge, encumbrance or
security interest upon any of the property of the Company or any Subsidiary, whether owned
at the date hereof or hereafter acquired (other than Pari Passu Debt), if, immediately after
giving effect to the incurrence of such additional Debt and the application of the proceeds
thereof, the aggregate principal amount of all outstanding
Debt of the Company and its Subsidiaries on a consolidated basis for borrowed money
which is secured by any mortgage, lien, charge, pledge, encumbrance or security interest on
property of the Company or any Subsidiary (excluding any Pari Passu Debt) is greater than
40% of the sum of (without duplication): (i) Total Assets as of the end of the calendar
quarter covered in the Company’s Annual Report on Form 10-K or Quarterly Report on Form
10-Q, as the case may be, most recently filed with the Commission (or, if such filing is not
permitted under the Exchange Act, with the Trustee) prior to the

6

 

incurrence of such
additional Debt and (ii) the purchase price of any real estate assets or mortgages
receivable acquired, and the amount of any securities offering proceeds received (to the
extent that such proceeds were not used to acquire real estate assets or mortgages
receivable or used to reduce Debt), by the Company or any Subsidiary since the end of such
calendar quarter, including those proceeds obtained in connection with the incurrence of
such additional Debt.

          (f) For purposes of this Section 1004, Debt shall be deemed to be “incurred” by the
Company or a Subsidiary whenever the Company or such Subsidiary shall create, assume,
guarantee or otherwise become liable in respect thereof.

          (g) Notwithstanding the foregoing, nothing in the above covenants shall prevent: (i)
the incurrence by the Company or any Subsidiary of Debt between or among the Company, any
Subsidiary or any Equity Investee or (ii) the Company or any Subsidiary from incurring
Refinancing Debt.

     Section 2.2 Events of Default. Pursuant to Section 902 of the Base Indenture: (i)
clauses (5) and (6) of Section 501 of the Original Indenture as they relate to (a) the Consent
Securities and (b) Securities issued on or after the date of this Supplemental Indenture (unless,
with respect to Securities referenced in the immediately preceding clause (b), otherwise provided
in the Officers’ Certificate or supplemental indenture authorizing any such series of Securities)
are hereby amended to provide that references to $10,000,000 contained in clauses (5) and (6) of
Section 501 of the Original Indenture are amended to be $50,000,000; and (ii) Section 2.3 of the
Second Supplemental Indenture and Section 2.3 of the Seventh Supplemental Indenture shall not apply
to (x) the Consent Securities or (y) any Securities issued on or after the date of this
Supplemental Indenture (unless, with respect to Securities referenced in the immediately preceding
clause (y), otherwise provided in the Officers’ Certificate or Supplemental Indenture authorizing
any such series of Securities).

ARTICLE THREE

MISCELLANEOUS PROVISIONS

     Section 3.1. This Supplemental Indenture shall be effective as of the opening of business on
the date first above written upon the execution and delivery hereof by each of the parties hereto.
Notwithstanding the foregoing, the amendments, supplements or modifications as set forth in this
Supplemental Indenture shall not become operative with respect to the Consent Securities unless and
until the Company pays to the Holders of the Consent Securities who have consented to such
amendments, supplements or modifications effected by this Supplemental Indenture the consent fee in
accordance with, and as contemplated by, the terms of that Consent
Solicitation Statement, dated September 21, 2009, relating to the solicitation of such
consents by the Company.

     Section 3.2. Except as expressly modified or amended hereby, the Base Indenture continues in
full force and effect and is in all respects confirmed, ratified and preserved.

     Section 3.3. This Supplemental Indenture and all its provisions shall be deemed a part of the
Base Indenture in the manner and to the extent herein and therein provided.

7

 

     Section 3.4. For the avoidance of doubt, this Supplemental Indenture shall not amend,
supplement or otherwise modify the Eighth Supplemental Indenture, dated August 14, 2009, by and
between the Company and the Trustee.

     Section 3.5. This Supplemental Indenture shall be governed by, and construed in accordance
with, the laws of the State of New York.

     Section 3.6. This Supplemental Indenture may be executed in any number of counterparts, each
of which so executed shall be deemed to be an original, but all such counterparts shall together
constitute but one and the same instrument.

     Section 3.7. The Trustee shall not have any responsibility for the Recitals of the Company
hereto, which Recitals are made by the Company alone, or for the validity or sufficiency of this
Supplemental Indenture.

[Remainder of page intentionally left blank]

8

 

     IN WITNESS WHEREOF, the parties hereto have caused this Ninth Supplemental Indenture to be
duly executed and the Company has caused its seal to be hereunto affixed and attested, all as of
the day and year first above written.

	 	 	 	 	 
	 	PROLOGIS

 	 
	 	By:  	/s/ Phillip D. Joseph, Jr.
 	 
	 	 	Name:  	Phillip D. Joseph, Jr. 	 
	 	 	Title:  	Senior Vice President & Treasurer 	 
	 

	 	 	 	 	 
	[SEAL]	 	 
	 
	 	 	 	 
	Attest:	 	 
	 
	 	 	 	 
	By:

	 	/s/ Rondi J. Boroos
	 	 
	 

	 	 	 	 
	 

	 	Name: Rondi J. Boroos	 	 
	 

	 	Title: Assistant Secretary	 	 

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION, as Trustee as aforesaid

 	 
	 	By:  	/s/ Thomas E. Tabor
 	 
	 	 	Name:  	Thomas E. Tabor 	 
	 	 	Title:  	Vice President 	 
	 

9

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