Document:

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EXHIBIT 4.1

INTERVOICE, INC.

INTERVOICE, INC.

2003 STOCK OPTION PLAN
(as amended by the Board of Directors
and approved at the 2004 annual meeting of shareholders)

 

ARTICLE 1. ESTABLISHMENT AND PURPOSE

     1.1 ESTABLISHMENT. Intervoice, Inc., a Texas corporation, hereby amends and restates the
Intervoice, Inc. 2003 Stock Option Plan, as set forth in this document.

     1.2 PURPOSE. The purposes of the Plan are to attract able persons to enter the employ of the
Company, to encourage Employees to remain in the employ of the Company and to provide motivation to
Employees to put forth maximum efforts toward the continued growth, profitability and success of
the Company, by providing incentives to such persons through the ownership and performance of the
Common Stock of Intervoice. A further purpose of the Plan is to provide a means through which
Intervoice may attract able persons to become directors of Intervoice and to provide directors of
Intervoice with additional incentive and reward opportunities designed to strengthen their concern
for the welfare of Intervoice and its stockholders. Toward these objectives, Options may be granted
under the Plan to Employees and Outside Directors on the terms and subject to the conditions set
forth in the Plan.

     1.3 EFFECTIVE DATE OF PLAN. This Plan, as amended by the Board of Directors on June 2, 2004,
shall be effective as of the date of its approval at the 2004 annual meeting of shareholders of
Intervoice by the holders of at least a majority of the shares of Common Stock present or
represented and voting on the proposal to approve this Plan, as amended, at such meeting. If the
Plan, as amended, is not approved by the shareholders, the Plan shall continue in the form approved
by the shareholders at the Company’s 2003 annual meeting of shareholders.

ARTICLE 2. DEFINITIONS

     2.1 AFFILIATE. “Affiliate” means a “parent corporation” or a “subsidiary corporation” of
Intervoice, as those terms are defined in Section 424(e) and (f) of the Code.

     2.2 BOARD. “Board” means the Board of Directors of Intervoice.

     2.3 CODE. “Code” means the Internal Revenue Code of 1986, as amended from time to time,
including regulations thereunder and successor provisions and regulations thereto.

     2.4 COMMITTEE. “Committee” means the Compensation Committee of the Board, or such other
committee of the Board as may be designated by the Board to administer the Plan; provided that the
Committee shall consist of two or more directors of Intervoice, all of whom are both a
“Non-Employee Director” within the meaning of Rule 16b-3 under the Exchange Act and an “outside
director” within the meaning of the definition of such term as contained in Treasury Regulation
Section 1.162-27(e)(3) interpreting Section 162(m) of the Code, or any successor definitions
adopted. The members of the Committee shall be appointed from time to time by, and shall serve at
the discretion of, the Board.

     2.5 COMMON STOCK. “Common Stock” means the Common Stock, no par value per share, of
Intervoice, or any stock or other securities of Intervoice hereafter issued or issuable in
substitution or exchange for the Common Stock.

     2.6 COMPANY. “Company” means Intervoice and its Affiliates.

 

 

     2.7 CORPORATE CHANGE. A “Corporate Change” shall be deemed to have occurred for purposes of
the Plan, upon (a) the dissolution or liquidation of Intervoice; (b) a reorganization, merger or
consolidation of Intervoice with one or more corporations (other than a merger or consolidation
effecting a reincorporation of Intervoice in another state or any other merger or consolidation in
which the shareholders of the surviving corporation and their proportionate interests therein
immediately after the merger or consolidation are substantially identical to the shareholders of
Intervoice and their proportionate interests therein immediately prior to the merger or
consolidation) (collectively, a “Corporate Change Merger”); (c) the sale of all or substantially
all of the assets of Intervoice; or (d) the occurrence of a Change in Control. A “Change in
Control” shall be deemed to have occurred for purposes of the Plan if (a) individuals who were
directors of Intervoice immediately prior to a Control Transaction shall cease, within two years of
such Control Transaction, to constitute a majority of the Board (or of the Board of Directors of
any successor to Intervoice or to a company which has acquired all or substantially all its assets)
other than by reason of an increase in the size of the membership of the applicable Board that is
approved by at least a majority of the individuals who were directors of Intervoice immediately
prior to such Control Transaction or (b) any entity, person or Group acquires shares of Intervoice
in a transaction or series of transactions that result in such entity, person or Group directly or
indirectly owning beneficially 50% or more of the outstanding shares of Common Stock. As used
herein, “Control Transaction” means (a) any tender offer for or acquisition of capital stock of
Intervoice pursuant to which any person, entity or Group directly or indirectly acquires beneficial
ownership of 20% or more of the outstanding shares of Common Stock, (b) any Corporate Change Merger
of Intervoice, (c) any contested election of directors of Intervoice or (d) any combination of the
foregoing, any one of which results in a change in voting power sufficient to elect a majority of
the Board. As used herein, “Group” means persons who act “in concert” as described in Sections
13(d)(3) and/or 14(d)(2) of the Exchange Act.

     2.8 EFFECTIVE DATE. “Effective Date” means the date an Option is determined to be effective by
the Committee upon the grant of such Option to an Employee, or the date on which an Option is
automatically granted to an Outside Director in accordance with Section 6.3.

     2.9 EMPLOYEE. “Employee” means any person treated as an employee by Intervoice or an
Affiliate. “Employee” shall not include an Outside Director or any other person treated by
Intervoice or an Affiliate as an independent contractor.

     2.10 EXCHANGE ACT. “Exchange Act” means the Securities Exchange Act of 1934, as amended from
time to time, including rules thereunder and successor provisions and rules thereto.

     2.11 FAIR MARKET VALUE. “Fair Market Value” means the fair market value of the Common Stock,
as determined in good faith by the Committee or, (i) if the Common Stock is traded in the
over-the-counter market, the average of the representative closing bid and asked prices as reported
by the National Association of Securities Dealers Automated Quotation System (“NASDAQ”) for the
date the Option is granted (or if there was no quoted price for such date of grant, then for the
last preceding business day on which there was a quoted price), or (ii) if the Common Stock is
traded in the NASDAQ National Market System, the average of the highest and lowest selling prices
for such stock as quoted on the NASDAQ National Market System for the date the Option is granted
(or if there are no sales for such date of grant, then for the last preceding business day on which
there were sales), or (iii) if the Common Stock is listed on any national stock exchange, the
average of the highest and lowest selling prices for such stock as quoted on such exchange for the
date the Option is granted (or if there are no sales for such date of grant, then for the last
preceding business day on which there were sales).

     2.12 INTERVOICE. “Intervoice” means Intervoice, Inc., a Texas corporation, and any successor
thereto.

     2.13 OPTION. “Option” means an option to purchase shares of Common Stock granted to a
Participant pursuant to Article 6.

     2.14 OPTION AGREEMENT. “Option Agreement” means a written agreement between Intervoice and a
Participant that sets forth the terms, conditions, restrictions and/or limitations applicable to an
Option.

     2.15 OUTSIDE DIRECTOR. “Outside Director” means an individual duly elected or chosen as a
director of Intervoice who is not also an Employee.

 

 

     2.16 PARTICIPANT. “Participant” means any Employee or Outside Director to whom an Option has
been granted under the Plan.

     2.17 PLAN. “Plan” means this Intervoice, Inc. 2003 Stock Option Plan (as amended and restated
effective the date of the Company’s 2004 annual meeting of shareholders).

     2.18 RETIREMENT. “Retirement” means the termination of a Participant’s employment or service
on or after his or her 65th birthday.

ARTICLE 3. PLAN ADMINISTRATION

     3.1. RESPONSIBILITY OF COMMITTEE. Subject to the terms and provisions of the Plan, including,
without limitation, Section 3.6, the Plan shall be administered by the Committee. The Committee
shall have total and exclusive responsibility to control, operate, manage and administer the Plan
in accordance with its terms; provided, however, that except as expressly provided herein the
Committee shall have no authority to administer or interpret the provisions of the Plan relating to
the grant of Options to Outside Directors.

     3.2 AUTHORITY OF COMMITTEE. The Committee shall have all the authority that may be necessary
or helpful to enable it to discharge its responsibilities with respect to the Plan. Without
limiting the generality of the preceding sentence, the Committee shall have the exclusive right,
subject to the provisions of Section 3.6, to: (a) interpret the Plan and the Option Agreements
executed hereunder; (b) determine eligibility for participation in the Plan; (c) decide all
questions concerning eligibility for, and the size of, Options granted under the Plan; (d) construe
any ambiguous provision of the Plan or any Option Agreement; (e) prescribe the form of the Option
Agreements embodying Options granted under the Plan; (f) correct any defect, supply any omission or
reconcile any inconsistency in the Plan or any Option Agreement; (g) issue administrative
guidelines as an aid to administer the Plan and make changes in such guidelines as it from time to
time deems proper; (h) make regulations for carrying out the Plan and make changes in such
regulations as it from time to time deems proper; (i) to the extent permitted under the Plan, grant
waivers of Plan terms, conditions, restrictions and limitations; (j) accelerate the vesting of an
Option granted to an Employee when such action or actions would be in the best interests of the
Company; and (k) take any and all other actions it deems necessary or advisable for the proper
operation or administration of the Plan.

     3.3 DISCRETIONARY AUTHORITY. Subject to the provisions of Section 3.6, (i) the Committee shall
have full discretionary authority in all matters related to the discharge of its responsibilities
and the exercise of its authority under the Plan, including, without limitation, its construction
of the terms of the Plan, and its determination of eligibility for participation under the Plan,
and (ii) the decisions of the Committee and its actions with respect to the Plan shall be final,
conclusive and binding on all persons having or claiming to have any right or interest in or under
the Plan, including Participants and their respective estates, beneficiaries and legal
representatives.

     3.4 ACTION BY THE COMMITTEE. The Committee may act only by a majority of its members. Any
determination of the Committee may be made, without a meeting, by a writing or writings signed by
all of the members of the Committee. In addition, the Committee may authorize any one or more of
its members to execute and deliver documents on behalf of the Committee.

     3.5 DELEGATION OF AUTHORITY. Notwithstanding anything contained in the Plan to the contrary,
the Committee may, in its discretion, delegate some or all of its authority under the Plan to any
person or persons; provided, however, that any such delegation shall be in writing; and provided
further that only the Committee may grant Options to Employees who are subject to Section 16 of the
Exchange Act or who are “covered employees” within the meaning of Section 162(m) of the Code.

     3.6 BOARD AUTHORITY. Notwithstanding the authority hereby delegated to the Committee to
administer the Plan, the Board shall have sole and exclusive authority, subject to the express
provisions of the Plan, to determine and interpret the terms, conditions, restrictions and/or
limitations applicable to Options automatically granted to Outside Directors pursuant to Section
6.3 of the Plan and to make all other determinations and take any and all other actions it deems
necessary or advisable with respect to such Options. The Board shall have no authority under the
Plan to grant Options to Employees, which authority is vested exclusively in the Committee

 

 

     3.7 LIABILITY; INDEMNIFICATION. No member of the Committee or the Board nor any person to whom
authority has been delegated by the Committee, shall be personally liable for any action,
interpretation or determination made in good faith with respect to the Plan or Options granted
hereunder, and each member of the Committee and the Board shall be fully indemnified and protected
by Intervoice with respect to any cost, expense or liability he or she may incur with respect to
any such action, interpretation or determination, to the extent permitted by applicable law.

ARTICLE 4. ELIGIBILITY

     All Employees are eligible to be selected to participate in the Plan and all Outside Directors
will automatically participate in the Plan. Options granted to Outside Directors shall be made only
in accordance with Section 6.3. The Committee shall select, from time to time, those Employees who,
in the opinion of the Committee, can further the Plan’s purposes. In making this selection, the
Committee may give consideration to the functions and responsibilities of the Employee, his or her
past, present and potential contributions to the growth and success of the Company and such other
factors deemed relevant by the Committee. Once an Employee is so selected, the Committee shall
determine the size of Option to be granted to the Employee and shall establish in the related
Option Agreement the terms, conditions, restrictions and/or limitations applicable to the Option,
in addition to those set forth in the Plan and the administrative rules and regulations, if any,
established by the Committee. No Employee is entitled to receive an Option unless selected by the
Committee.

ARTICLE 5. SHARES SUBJECT TO THE PLAN

     5.1 AVAILABLE SHARES. The maximum number of shares of Common Stock that shall be available for
grant of Options under the Plan shall not exceed 3,500,000, subject to adjustment as provided in
Sections 5.2 and 5.3. Shares of Common Stock issued pursuant to the Plan may be shares of original
issuance or treasury shares or a combination of the foregoing, as the Board, in its discretion,
shall from time to time determine.

     5.2 ADJUSTMENTS FOR RECAPITALIZATIONS AND REORGANIZATIONS.

          (a) The shares with respect to which Options may be granted under the Plan are shares of
Common Stock as presently constituted, but if, and whenever, prior to the expiration or
satisfaction of an Option theretofore granted, Intervoice shall effect a subdivision or
consolidation of shares of Common Stock or the payment of a stock dividend on Common Stock without
receipt of consideration by Intervoice, the number of shares of Common Stock with respect to which
such Option may thereafter be exercised or satisfied, as applicable, (i) in the event of an
increase in the number of outstanding shares shall be proportionately increased, and the exercise
price per share shall be proportionately reduced, and (ii) in the event of a reduction in the
number of outstanding shares shall be proportionately reduced, and the exercise price per share
shall be proportionately increased.

          b) If Intervoice recapitalizes or otherwise changes its capital structure, thereafter upon any
exercise of an Option theretofore granted the Participant shall be entitled to purchase under such
Option, in lieu of the number of shares of Common Stock then covered by such Option, the number and
class of shares of stock or other securities to which the Participant would have been entitled
pursuant to the terms of the recapitalization if, immediately prior to such recapitalization, the
Participant had been the holder of record of the number of shares of Common Stock then covered by
such Option.

          (c) In the event of changes in the outstanding Common Stock by reason of recapitalizations,
reorganizations, mergers, consolidations, combinations, separations (including a spin-off or other
distribution of stock or property), exchanges or other relevant changes in capitalization occurring
after the date of grant of any Option and not otherwise provided for by this Section 5.2, any
outstanding Options and any Option Agreements evidencing such Options shall be subject to
adjustment by the Committee at its discretion as to the number, price and kind of shares of Common
Stock subject to, and other terms of, such Options to reflect such changes in the outstanding
Common Stock.

 

 

          (d) In the event of any changes in the outstanding Common Stock provided for in this Section
5.2, the aggregate number of shares available for grant of Options under the Plan may be equitably
adjusted by the Committee, whose determination shall be conclusive. Any adjustment provided for in
this Section 5.2(d) shall be subject to any required stockholder action.

          (e) Notwithstanding the authority hereby delegated to the Committee or the Board to administer
the Plan or any provision of the Plan including this Section 5.2, the Company will not reprice the
Options under the Plan without prior approval by the shareholders of Intervoice. For purposes of
this subsection 5.2(e), repricing Options shall include any of the following events: amending an
Option to reduce the exercise price; canceling an Option and granting a new lower-priced Option;
granting a new Option and canceling an old higher-priced Option; amending an Option to allow for
the payment of a cash bonus upon Option exercise; substituting restricted stock for underwater
Options; or the buyback of underwater Options and issuance of new Options.

     5.3 ADJUSTMENTS FOR OPTIONS. The Committee shall have full discretion to determine the manner
in which shares of Common Stock available for grant of Options under the Plan are counted. Without
limiting the discretion of the Committee under this Section 5.3, unless otherwise determined by the
Committee, for the purpose of determining the number of shares of Common Stock available for grant
of Options under the Plan; (a) the grant of an Option shall reduce the number of shares available
for grant of Options under the Plan by the number of shares subject to such Option and (b) if any
Option is canceled or forfeited, or terminates, expires or lapses, for any reason, the shares then
subject to such Option shall again be available for grant of Options under the Plan.

ARTICLE 6. OPTIONS

     6.1 GENERAL. All Options granted under this Plan shall be nonqualified stock options that are
not intended to meet the requirements of Section 422(b) of the Code.

     6.2 TERMS AND CONDITIONS OF OPTIONS. All Options granted under the Plan shall be subject to
the terms, conditions, restrictions and limitations of the Plan. The Committee with respect to
Options granted to Employees or the Board with respect to Options automatically granted to Outside
Directors may, in its sole judgment, subject any Option or the Common Stock underlying such Option
to such other terms, conditions, restrictions and/or limitations (including, but not limited to,
the time and conditions of exercise or vesting of an Option and restrictions on transferability of
any shares of Common Stock issued or delivered pursuant to the exercise of an Option), provided
they are not inconsistent with the terms of the Plan. Options granted under the Plan need not be
uniform.

          (a) Options granted to Employees under the Plan shall be exercisable in whole or in such
installments and at such times as may be determined by the Committee. The price at which a share of
Common Stock may be purchased upon exercise of an Option by an Employee shall be determined by the
Committee, but such exercise price shall not be less than 100% of the Fair Market Value of a share
of Common Stock on the Effective Date of the Option’s grant. The term of each Option granted to an
Employee shall be as specified by the Committee; provided, however, that unless otherwise
designated by the Committee, no Options shall be exercisable later than 10 years from the Effective
Date of the Option’s grant.

          (b) Subject to the provisions of Section 6.3, the Board shall establish in the related Option
Agreement the terms, conditions, restrictions and/or limitations applicable to Options granted to
Outside Directors, provided they are not inconsistent with the terms of the Plan.

     6.3 GRANTING OF OPTIONS.

          (a) OPTIONS GRANTED TO EMPLOYEES. With regard to each Option granted to an Employee, the
Committee will determine the number of shares subject to the Option, the manner and time of the
Option’s exercise, the exercise price per share of Common Stock subject to the Option, and the
duration of the Option. An Option granted to an Employee shall become exercisable on the date
specified in the applicable Option Agreement with such Employee. An Employee is eligible to
exercise an Option only if he or she remains in the service of the Company through the date on
which the Option or portion of the Option is scheduled to become exercisable.

 

 

          (b) OPTIONS GRANTED TO OUTSIDE DIRECTORS. During the term of the Plan, each Outside Director
shall be granted Options to purchase Common Stock under the Plan in accordance with the following
terms and conditions:

          (i) Automatic Grants.

	 	(1)  	          Outside Directors Initially Elected to Serve on the Board at an Annual
Meeting of Shareholders. On the date of the first annual meeting of the
shareholders of Intervoice at which an Outside Director is initially elected to serve
on the Board commencing with the 2004 annual meeting of shareholders, such Outside
Director shall be granted an Option to purchase 20,000 shares of Common Stock. Subject
to subsection (b)(ii) of this Section, such Option shall become exercisable in full on
the date of the annual meeting of the shareholders of Intervoice next following the
date of grant of such Option.
	 
	 	(2)  	          Outside Directors Initially Elected by the Board of Directors to Fill a
Vacancy on the Board. On any date after the 2004 annual meeting of the
shareholders of Intervoice at which an Outside Director is elected by the Board to
fill a vacancy on the Board, such Outside Director shall be granted an Option to
purchase 20,000 shares of Common Stock. Subject to subsection (b)(ii) of this Section,
such Option shall become exercisable in full on the date of the annual meeting of the
shareholders of Intervoice next following the annual meeting of shareholders at which
the Outside Director is first elected by the shareholders to serve on the Board. In no
event shall an Outside Director receive an automatic grant of an Option under both
this subsection and subsection (b)(i)(1).
	 
	 	(3)  	          Outside Directors Re-elected to Serve on the Board at an Annual Meeting of
Shareholders. Each Outside Director re-elected to serve Intervoice as a
director on the date of an annual meeting of the shareholders of Intervoice
commencing with the 2004 annual meeting of shareholders, shall be granted, as of
such date, an Option to purchase 12,000 shares of Common Stock. Subject to
subsection (b)(ii) of this Section, such Option shall become exercisable in full on
the date of the annual meeting of the shareholders of Intervoice next following the
date of grant of such Option.

          (ii) Eligibility. An Option will become exercisable only if the Outside Director continues to
serve Intervoice as a director through the date of the annual meeting of shareholders at which the
Option is scheduled to become exercisable.

          (iii) Price. The exercise price of each share of Common Stock that may be purchased upon
exercise of an Option granted to an Outside Director shall be 100% of the Fair Market Value of a
share of Common Stock on the Effective Date of the Option’s grant.

          (iv) Duration. Options granted to Outside Directors shall expire no later than 10 years from
the Effective Date of the Option’s grant, unless sooner terminated in accordance with the terms of
the related Option Agreement and the Plan, including Section 6.5.

          (v) Effectiveness of a Grant. Options granted to Outside Directors shall be granted
automatically in accordance with the terms of this Section 6.3 without any further action by the
Board. The Company shall reduce, on a substantially proportionate basis, the number of shares of
Common Stock granted to an Outside Director under this Section 6.3 in the event that the total
number of shares then available under the Plan is less than the total number of shares with respect
to which all Outside Directors are granted Options on an Effective Date.

     6.4 EXERCISE OF OPTIONS.

     (a) Subject to the terms and conditions of the Plan, Options shall be exercised by the
delivery of a written notice of exercise to Intervoice, setting forth the number of shares of
Common Stock with respect to which the Option is to be exercised, accompanied by full payment for
such shares.

     (b) Upon exercise of an Option, the exercise price of the Option shall be payable to
Intervoice in full in cash.

 

 

     (c) Payment of the exercise price of an Option may also be made, in the discretion of the
Committee, by delivery to Intervoice or its designated agent of an executed irrevocable option
exercise form together with irrevocable instructions to a broker-dealer to sell or margin a
sufficient portion of the shares with respect to which the Option is exercised and deliver the sale
or margin loan proceeds directly to Intervoice to pay for the exercise price and any required
withholding taxes.

     (d) As soon as reasonably practicable after receipt of written notification of exercise of an
Option and full payment of the exercise price and any required withholding taxes, Intervoice shall
deliver to the Participant, in the Participant’s name, a stock certificate or certificates in an
appropriate amount based upon the number of shares of Common Stock purchased under the Option.

     6.5 TERMINATION OF SERVICE. Each Option Agreement shall set forth the extent to which the
Participant shall have the right to exercise the Option following termination of the Participant’s
employment or service with the Company. Such provisions shall be determined in the sole discretion
of the Committee with respect to an Option granted to an Employee or the Board with respect to an
Option granted to an Outside Director, need not be uniform among all Options granted under the Plan
and may reflect distinctions based on the reasons for termination of employment or service. Subject
to Section 5.2 and Article 7, in the event that a Participant’s Option Agreement does not set forth
such termination provisions, the following termination provisions shall apply with respect to such
Option:

          (a) RETIREMENT, DISABILITY OR DEATH. If the employment or service of a Participant shall
terminate by reason of Retirement, permanent and total disability (within the meaning of Section
22(e)(3) of the Code) or death, outstanding Options held by the Participant may be exercised, to
the extent then vested, no more than two years from the date of such termination of employment or
termination of service, unless the Options in any way expressly provide for earlier termination.

          (b) OTHER TERMINATION. If the employment or service of a Participant shall terminate for any
reason other than the reasons set forth in paragraph (a) above, whether on a voluntary or
involuntary basis, outstanding Options held by the Participant may be exercised, to the extent then
vested, no more than two years from the date of such termination of employment or termination of
service, unless the Options in any way expressly provide for earlier termination.

          (c) TERMINATION FOR CAUSE. Notwithstanding paragraphs (a) and (b) above, if the employment or
service of a Participant shall be terminated by reason of such Participant’s fraud, dishonesty or
performance of other acts detrimental to the Company, all outstanding Options held by the
Participant shall immediately be forfeited to the Company and no additional exercise period shall
be allowed, regardless of the vested status of the Options.

     6.6 MAXIMUM OPTION GRANTS. Notwithstanding any provision contained in the Plan to the
contrary, the maximum number of shares of Common Stock for which Options may be granted under the
Plan to any one Participant during a calendar year is 300,000 shares.

ARTICLE 7. CORPORATE CHANGE

     Notwithstanding anything contained in the Plan to the contrary, in the event of a Corporate
Change, unless otherwise provided in the related Option Agreement, all Options then outstanding
shall become exercisable in full and all restrictions imposed on any Common Stock that may be
delivered pursuant to the exercise of such Options shall be deemed satisfied.

ARTICLE 8. AMENDMENT AND TERMINATION

     The Board may at any time suspend, terminate, amend or modify the Plan, in whole or in part;
provided, however, that no amendment or modification of the Plan shall become effective without the
approval of such amendment or modification by the stockholders of Intervoice if Intervoice, on the
advice of counsel, determines that such stockholder approval is necessary or desirable.
Notwithstanding any provision of this Plan to the contrary, no such amendment or modification shall
be made without receipt of the prior approval of the shareholders of Intervoice where such change
would (a) increase the total number of shares of Common Stock which may be issued under the Plan
(other than as provided in Section 5.2 of the Plan); (b) modify the criteria for determining the
employees (or class of employees) eligible to receive Options

 

 

under the Plan or (c) materially increase benefits accruing under the Plan to Participants who
are subject to Section 16 of the Securities Exchange Act of 1934. Upon termination of the Plan, the
terms and provisions of the Plan shall, notwithstanding such termination, continue to apply to
Options granted prior to such termination. No suspension, termination, amendment or modification of
the Plan shall adversely affect in any material way any Option previously granted under the Plan,
without the consent of the Participant holding such Option (except that such consent shall not be
required in the case of an amendment or modification required following a change in law or
interpretation thereof to cause the Options under the Plan to continue to qualify as
“performance-based compensation” within the meaning of Section 162(m) of the Code).

ARTICLE 9. MISCELLANEOUS

     9.1 OPTION AGREEMENTS. After the Committee grants an Option under the Plan to an Employee or
upon an automatic grant of an Option to an Outside Director, Intervoice and the Participant shall
enter into an Option Agreement setting forth the terms, conditions, restrictions and/or limitations
applicable to the Option and such other matters as the Committee with respect to an Option granted
to an Employee or the Board with respect to an Option automatically granted to an Outside Director
may determine to be appropriate. The terms and provisions of the respective Option Agreements need
not be identical. In the event of any conflict between an Option Agreement and the Plan, the terms
of the Plan shall govern.

     9.2 NONASSIGNABILITY. Except as otherwise provided in a Participant’s Option Agreement, no
Option granted under the Plan may be sold, transferred, pledged, exchanged, hypothecated or
otherwise disposed of, other than by will or pursuant to the applicable laws of descent and
distribution. Further, no such Option shall be subject to execution, attachment or similar process.
Any attempted sale, transfer, pledge, exchange, hypothecation or other disposition of an Option not
specifically permitted by the Plan or the Option Agreement shall be null and void and without
effect. All Options granted to a Participant under the Plan shall be exercisable during his or her
lifetime only by such Participant or, in the event of the Participant’s legal incapacity, by his or
her guardian or legal representative.

     9.3 NO FRACTIONAL SHARES. No fractional shares of Common Stock shall be issued pursuant to any
Option granted under the Plan, and no payment or other adjustment shall be made in respect of any
such fractional share.

     9.4 WITHHOLDING TAXES. The Company shall be entitled to deduct from any payment made under the
Plan, regardless of the form of such payment, the amount of all applicable income and employment
taxes required by law to be withheld with respect to such payment, may require the Participant to
pay to the Company such withholding taxes prior to and as a condition of the making of any payment
or the issuance or delivery of any shares of Common Stock under the Plan and shall be entitled to
deduct from any other compensation payable to the Participant any withholding obligations with
respect to Options under the Plan.

     9.5 REGULATORY APPROVALS AND LISTINGS. Notwithstanding anything contained in the Plan to the
contrary, Intervoice shall have no obligation to issue or deliver shares of Common Stock under the
Plan prior to (a) the obtaining of any approval from any governmental agency which Intervoice
shall, in its sole discretion, determine to be necessary or advisable, (b) the admission of such
shares to listing on the stock exchange or stock market on which the Common Stock may be listed and
(c) the completion of any registration of any governmental body which Intervoice shall, in its sole
discretion, determine to be necessary or advisable.

     9.6 BINDING EFFECT. The obligation of Intervoice under the Plan shall be binding upon any
successor corporation or organization resulting from the merger, consolidation or other
reorganization of Intervoice, or upon any successor corporation or organization succeeding to all
or substantially all of the assets and business of Intervoice. The terms and conditions of the Plan
shall be binding upon each Participant and his or her heirs, legatees, distributees and legal
representatives.

     9.7 SEVERABILITY. If any provision of the Plan or any Option Agreement is held to be illegal
or invalid for any reason, the illegality or invalidity shall not affect the remaining provisions
of the Plan or such agreement, as the case may be, but such provision shall be fully severable and
the Plan or such agreement, as the case may be, shall be construed and enforced as if the illegal
or invalid provision had never been included herein or therein.

 

 

     9.8 NO RESTRICTION OF CORPORATE ACTION. Nothing contained in the Plan shall be construed to
prevent Intervoice or any Affiliate from taking any corporate action (including any corporate
action to suspend, terminate, amend or modify the Plan) that is deemed by Intervoice or such
Affiliate to be appropriate or in its best interest, whether or not such action would have an
adverse effect on the Plan or any Options made or to be made under the Plan. No Participant or
other person shall have any claim against Intervoice or any Affiliate as a result of such action.

     9.9 NOTICES. All notices required or permitted to be given or made under the Plan or any
Option Agreement shall be in writing and shall be deemed to have been duly given or made if (a)
delivered personally, (b) transmitted by first class registered or certified United States mail,
postage prepaid, return receipt requested, (c) sent by prepaid overnight courier service or (d)
sent by telecopy or facsimile transmission, answer back requested, to the person who is to receive
it at the address that such person has theretofore specified by written notice delivered in
accordance herewith. Such notices shall be effective (a) if delivered personally or sent by courier
service, upon actual receipt by the intended recipient, (b) if mailed, upon the earlier of five
days after deposit in the mail or the date of delivery as shown by the return receipt therefore or
(c) if sent by telecopy or facsimile transmission, when the answer back is received. Intervoice or
a Participant may change, at any time and from time to time, by written notice to the other, the
address that it or such Participant had theretofore specified for receiving notices. Until such
address is changed in accordance herewith, notices hereunder or under an Option Agreement shall be
delivered or sent (a) to a Participant at his or her address as set forth in the records of the
Company or (b) to Intervoice at the principal executive offices of Intervoice clearly marked
“Attention: Human Resources Department.”

     9.10 GOVERNING LAW. The Plan shall be governed and construed in accordance with the internal
laws (and not the principles relating to conflicts of laws) of the State of Texas, except as
superseded by applicable federal law.

     9.11 NO RIGHT, TITLE OR INTEREST IN COMPANY ASSETS. No Participant shall have any rights as a
stockholder of Intervoice as a result of participation in the Plan until the date of issuance of a
stock certificate in his or her name. To the extent any person acquires a right to receive payments
from the Company under the Plan, such rights shall be no greater than the rights of an unsecured
creditor of the Company, and such person shall not have any rights in or against any specific
assets of the Company. All of the Options granted under the Plan shall be unfunded.

     9.12 RISK OF PARTICIPATION. Nothing contained in the Plan shall be construed either as a
guarantee by Intervoice or its Affiliates, or their respective stockholders, directors, officers or
employees, or the value of any assets of the Plan or as an agreement by Intervoice or its
Affiliates, or their respective stockholders, directors, officers or employees, to indemnify anyone
for any losses, damages, costs or expenses resulting from participation in the Plan.

     9.13 NO GUARANTEE OF TAX CONSEQUENCES. No person connected with the Plan in any capacity,
including, but not limited to, Intervoice and the Affiliates and their respective directors,
officers, agents and employees, makes any representation, commitment or guarantee that any tax
treatment, including, but not limited to, Federal, state and local income, estate and gift tax
treatment, will be applicable with respect to any Options or payments thereunder made to or for the
benefit of a Participant under the Plan or that such tax treatment will apply to or be available to
a Participant on account of participation in the Plan.

     9.14 OTHER BENEFITS. No Option granted under the Plan shall be considered compensation for
purposes of computing benefits or contributions under any retirement plan of Intervoice or any
Affiliate, nor affect any benefits or compensation under any other benefit or compensation plan of
Intervoice or any Affiliate now or subsequently in effect.

     9.15 CONTINUED EMPLOYMENT OR SERVICE. Nothing contained in the Plan or in any Option Agreement
shall confer upon any Participant the right to continue in the employ of the Company, or interfere
in any way with the rights of the Company to terminate his or her employment at any time, with or
without cause. Further, participation in this Plan shall not give any Outside Director any right to
continue as a director of Intervoice.

 

 

     9.16 MISCELLANEOUS. Headings are given to the articles and sections of the Plan solely as a
convenience to facilitate reference. Such headings shall not be deemed in any way material or
relevant to the construction of the Plan or any provisions hereof. The use of the masculine gender
shall also include meaning the feminine. Wherever the context of the Plan dictates, the use of the
singular shall also include within its meaning the plural, and vice versa.exv10w45

 

Exhibit 10.45

EXECUTION COPY

 

 

 

 

 

SYBASE, INC.

1.75 % CONVERTIBLE SUBORDINATED NOTES DUE 2025

INDENTURE

DATED AS OF FEBRUARY 22, 2005

U.S. BANK NATIONAL ASSOCIATION,

AS TRUSTEE

 

 

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 	 	 	 	 
	ARTICLE 1 DEFINITIONS AND INCORPORATION BY REFERENCE	 	 	1	 
	 	 	 	 	 
	 	 	SECTION 1.1.	 	DEFINITIONS
	 	 	1	 
	 	 	SECTION 1.2.	 	OTHER DEFINITIONS
	 	 	8	 
	 	 	SECTION 1.3.	 	TRUST INDENTURE ACT PROVISIONS
	 	 	9	 
	 	 	SECTION 1.4.	 	RULES OF CONSTRUCTION
	 	 	9	 
	 	 	 	 	 
	ARTICLE 2 THE SECURITIES	 	 	10	 
	 	 	 	 	 
	 	 	SECTION 2.1.	 	FORM AND DATING
	 	 	10	 
	 	 	SECTION 2.2.	 	EXECUTION AND AUTHENTICATION
	 	 	11	 
	 	 	SECTION 2.3.	 	REGISTRAR, PAYING AGENT AND CONVERSION AGENT
	 	 	12	 
	 	 	SECTION 2.4.	 	PAYING AGENT TO HOLD MONEY IN TRUST
	 	 	13	 
	 	 	SECTION 2.5.	 	SECURITYHOLDER LISTS
	 	 	13	 
	 	 	SECTION 2.6.	 	TRANSFER AND EXCHANGE
	 	 	13	 
	 	 	SECTION 2.7.	 	REPLACEMENT SECURITIES
	 	 	14	 
	 	 	SECTION 2.8.	 	OUTSTANDING SECURITIES
	 	 	15	 
	 	 	SECTION 2.9.	 	TREASURY SECURITIES
	 	 	15	 
	 	 	SECTION 2.10.	 	TEMPORARY SECURITIES
	 	 	15	 
	 	 	SECTION 2.11.	 	CANCELLATION
	 	 	16	 
	 	 	SECTION 2.12.	 	LEGEND; ADDITIONAL TRANSFER AND EXCHANGE REQUIREMENTS
	 	 	16	 
	 	 	SECTION 2.13.	 	CUSIP NUMBERS
	 	 	18	 
	 	 	 	 	 
	ARTICLE 3 REDEMPTION AND PURCHASE	 	 	 	 
	 	 	 	 	 
	 	 	SECTION 3.1.	 	TO REDEEM; NOTICE TO TRUSTEE
	 	 	18	 
	 	 	SECTION 3.2.	 	SELECTION OF SECURITIES TO BE REDEEMED
	 	 	19	 
	 	 	SECTION 3.3.	 	NOTICE OF REDEMPTION
	 	 	19	 
	 	 	SECTION 3.4.	 	EFFECT OF NOTICE OF REDEMPTION
	 	 	20	 
	 	 	SECTION 3.5.	 	DEPOSIT OF REDEMPTION PRICE
	 	 	20	 
	 	 	SECTION 3.6.	 	SECURITIES REDEEMED IN PART
	 	 	21	 
	 	 	SECTION 3.7.	 	PURCHASE OF SECURITIES AT OPTION OF THE HOLDER UPON CHANGE IN CONTROL
	 	 	21	 
	 	 	SECTION 3.8.	 	EFFECT OF CHANGE IN CONTROL PURCHASE NOTICE
	 	 	24	 
	 	 	SECTION 3.9.	 	DEPOSIT OF CHANGE IN CONTROL PURCHASE PRICE
	 	 	24	 
	 	 	SECTION 3.10.	 	REPAYMENT TO THE COMPANY
	 	 	25	 
	 	 	SECTION 3.11.	 	PURCHASE OF SECURITIES AT OPTION OF THE HOLDER ON SPECIFIED DATES
	 	 	25	 
	 	 	SECTION 3.12.	 	SECURITIES PURCHASED IN PART
	 	 	28	 
	 	 	SECTION 3.13.	 	COMPLIANCE WITH SECURITIES LAWS UPON PURCHASE OF SECURITIES
	 	 	28	 
	 	 	SECTION 3.14.	 	PURCHASE OF SECURITIES IN OPEN MARKET
	 	 	28	 
	 	 	 	 	 
	ARTICLE 4 CONVERSION	 	 	29	 
	 	 	 	 	 
	 	 	SECTION 4.1.	 	CONVERSION PRIVILEGE AND CONVERSION RATE
	 	 	29	 
	 	 	SECTION 4.2.	 	CONVERSION PROCEDURE
	 	 	33	 

-i-

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 	 	 	 	 
	 	 	SECTION 4.3.	 	FRACTIONAL SHARES
	 	 	34	 
	 	 	SECTION 4.4.	 	TAXES ON CONVERSION
	 	 	34	 
	 	 	SECTION 4.5.	 	COMPANY TO PROVIDE STOCK
	 	 	35	 
	 	 	SECTION 4.6.	 	ADJUSTMENT OF CONVERSION RATE
	 	 	35	 
	 	 	SECTION 4.7.	 	NO ADJUSTMENT
	 	 	40	 
	 	 	SECTION 4.8.	 	ADJUSTMENT FOR TAX PURPOSES
	 	 	40	 
	 	 	SECTION 4.9.	 	NOTICE OF ADJUSTMENT
	 	 	40	 
	 	 	SECTION 4.10.	 	NOTICE OF CERTAIN TRANSACTIONS
	 	 	40	 
	 	 	SECTION 4.11.	 	EFFECT OF RECLASSIFICATION, CONSOLIDATION, MERGER OR SALE ON CONVERSION PRIVILEGE
	 	 	41	 
	 	 	SECTION 4.12.	 	TRUSTEE’S DISCLAIMER
	 	 	42	 
	 	 	SECTION 4.13.	 	VOLUNTARY INCREASE
	 	 	42	 
	 	 	SECTION 4.14.	 	PAYMENT OF CASH IN LIEU OF COMMON STOCK
	 	 	42	 
	 	 	SECTION 4.15.	 	CONVERSION AFTER A PUBLIC ACQUIRER CHANGE IN CONTROL
	 	 	43	 
	 	 	 	 	 
	ARTICLE 5 [INTENTIONALLY OMITTED]	 	 	44	 
	 	 	 	 	 
	ARTICLE 6 COVENANTS	 	 	44	 
	 	 	 	 	 
	 	 	SECTION 6.1.	 	PAYMENT OF SECURITIES
	 	 	44	 
	 	 	SECTION 6.2.	 	SEC REPORTS
	 	 	45	 
	 	 	SECTION 6.3.	 	COMPLIANCE CERTIFICATES
	 	 	45	 
	 	 	SECTION 6.4.	 	FURTHER INSTRUMENTS AND ACTS
	 	 	45	 
	 	 	SECTION 6.5.	 	MAINTENANCE OF CORPORATE EXISTENCE
	 	 	45	 
	 	 	SECTION 6.6.	 	RULE 144A INFORMATION REQUIREMENT
	 	 	45	 
	 	 	SECTION 6.7.	 	STAY, EXTENSION AND USURY LAWS
	 	 	46	 
	 	 	SECTION 6.8.	 	PAYMENT OF LIQUIDATED DAMAGES
	 	 	46	 
	 	 	 	 	 
	ARTICLE 7 CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE	 	 	46	 
	 	 	 	 	 
	 	 	SECTION 7.1.	 	COMPANY MAY CONSOLIDATE, ETC., ONLY ON CERTAIN TERMS
	 	 	46	 
	 	 	SECTION 7.2.	 	SUCCESSOR SUBSTITUTED
	 	 	47	 
	 	 	 	 	 
	ARTICLE 8 DEFAULT AND REMEDIES	 	 	47	 
	 	 	 	 	 
	 	 	SECTION 8.1.	 	EVENTS OF DEFAULT
	 	 	47	 
	 	 	SECTION 8.2.	 	ACCELERATION
	 	 	49	 
	 	 	SECTION 8.3.	 	OTHER REMEDIES
	 	 	50	 
	 	 	SECTION 8.4.	 	WAIVER OF DEFAULTS AND EVENTS OF DEFAULT
	 	 	50	 
	 	 	SECTION 8.5.	 	CONTROL BY MAJORITY
	 	 	50	 
	 	 	SECTION 8.6.	 	LIMITATIONS ON SUITS
	 	 	50	 
	 	 	SECTION 8.7.	 	RIGHTS OF HOLDERS TO RECEIVE PAYMENT AND TO CONVERT
	 	 	51	 
	 	 	SECTION 8.8.	 	COLLECTION SUIT BY TRUSTEE
	 	 	51	 
	 	 	SECTION 8.9.	 	TRUSTEE MAY FILE PROOFS OF CLAIM
	 	 	51	 
	 	 	SECTION 8.10.	 	PRIORITIES
	 	 	52	 
	 	 	SECTION 8.11.	 	UNDERTAKING FOR COSTS
	 	 	52	 

-ii-

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 	 	 	 	 
	ARTICLE 9 TRUSTEE	 	 	52	 
	 	 	 	 	 
	 	 	SECTION 9.1.	 	DUTIES OF TRUSTEE
	 	 	52	 
	 	 	SECTION 9.2.	 	RIGHTS OF TRUSTEE
	 	 	53	 
	 	 	SECTION 9.3.	 	INDIVIDUAL RIGHTS OF TRUSTEE
	 	 	54	 
	 	 	SECTION 9.4.	 	TRUSTEE’S DISCLAIMER
	 	 	54	 
	 	 	SECTION 9.5.	 	NOTICE OF DEFAULT OR EVENTS OF DEFAULT
	 	 	54	 
	 	 	SECTION 9.6.	 	REPORTS BY TRUSTEE TO HOLDERS
	 	 	55	 
	 	 	SECTION 9.7.	 	COMPENSATION AND INDEMNITY
	 	 	55	 
	 	 	SECTION 9.8.	 	REPLACEMENT OF TRUSTEE
	 	 	56	 
	 	 	SECTION 9.9.	 	SUCCESSOR TRUSTEE BY MERGER, ETC
	 	 	56	 
	 	 	SECTION 9.10.	 	ELIGIBILITY; DISQUALIFICATION
	 	 	57	 
	 	 	SECTION 9.11.	 	PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY
	 	 	57	 
	 	 	 	 	 
	ARTICLE 10 SATISFACTION AND DISCHARGE OF INDENTURE	 	 	57	 
	 	 	 	 	 
	 	 	SECTION 10.1.	 	SATISFACTION AND DISCHARGE OF INDENTURE
	 	 	57	 
	 	 	SECTION 10.2.	 	APPLICATION OF TRUST MONEY
	 	 	58	 
	 	 	SECTION 10.3.	 	REPAYMENT TO COMPANY
	 	 	58	 
	 	 	SECTION 10.4.	 	REINSTATEMENT
	 	 	58	 
	 	 	 	 	 
	ARTICLE 11 AMENDMENTS, SUPPLEMENTS AND WAIVERS	 	 	59	 
	 	 	 	 	 
	 	 	SECTION 11.1.	 	WITHOUT CONSENT OF HOLDERS
	 	 	59	 
	 	 	SECTION 11.2.	 	WITH CONSENT OF HOLDERS
	 	 	60	 
	 	 	SECTION 11.3.	 	COMPLIANCE WITH TRUST INDENTURE ACT
	 	 	61	 
	 	 	SECTION 11.4.	 	REVOCATION AND EFFECT OF CONSENTS
	 	 	61	 
	 	 	SECTION 11.5.	 	NOTATION ON OR EXCHANGE OF SECURITIES
	 	 	61	 
	 	 	SECTION 11.6.	 	TRUSTEE TO SIGN AMENDMENTS, ETC
	 	 	61	 
	 	 	SECTION 11.7.	 	EFFECT OF SUPPLEMENTAL INDENTURES
	 	 	61	 
	 	 	 	 	 
	ARTICLE 12 [INTENTIONALLY OMITTED]	 	 	62	 
	 	 	 	 	 
	ARTICLE 13 SUBORDINATION	 	 	62	 
	 	 	 	 	 
	 	 	SECTION 13.1.	 	AGREEMENT TO SUBORDINATE
	 	 	62	 
	 	 	SECTION 13.2.	 	LIQUIDATION; DISSOLUTION; BANKRUPTCY
	 	 	62	 
	 	 	SECTION 13.3.	 	DEFAULT ON DESIGNATED SENIOR INDEBTEDNESS
	 	 	63	 
	 	 	SECTION 13.4.	 	ACCELERATION OF SECURITIES
	 	 	63	 
	 	 	SECTION 13.5.	 	WHEN DISTRIBUTION MUST BE PAID OVER
	 	 	64	 
	 	 	SECTION 13.6.	 	NOTICE BY THE COMPANY
	 	 	64	 
	 	 	SECTION 13.7.	 	SUBROGATION
	 	 	64	 
	 	 	SECTION 13.8.	 	RELATIVE RIGHTS
	 	 	64	 
	 	 	SECTION 13.9.	 	SUBORDINATION MAY NOT BE IMPAIRED BY THE COMPANY
	 	 	65	 
	 	 	SECTION 13.10.	 	DISTRIBUTION OR NOTICE TO REPRESENTATIVE
	 	 	65	 
	 	 	SECTION 13.11.	 	RIGHTS OF TRUSTEE AND PAYING AGENT
	 	 	65	 
	 	 	 	 	 
	ARTICLE 14 MISCELLANEOUS	 	 	66	 
	 	 	 	 	 
	 	 	SECTION 14.1.	 	TRUST INDENTURE ACT CONTROLS
	 	 	66	 
	 	 	SECTION 14.2.	 	NOTICES
	 	 	66	 
	 	 	SECTION 14.3.	 	COMMUNICATIONS BY HOLDERS WITH OTHER HOLDERS
	 	 	67	 

-iii-

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 	 	 	 	 
	 	 	SECTION 14.4.	 	CERTIFICATE AND OPINION AS TO CONDITIONS PRECEDENT
	 	 	67	 
	 	 	SECTION 14.5.	 	RECORD DATE FOR VOTE OR CONSENT OF SECURITYHOLDERS
	 	 	68	 
	 	 	SECTION 14.6.	 	RULES BY TRUSTEE, PAYING AGENT, REGISTRAR AND CONVERSION AGENT
	 	 	68	 
	 	 	SECTION 14.7.	 	LEGAL HOLIDAYS
	 	 	68	 
	 	 	SECTION 14.8.	 	GOVERNING LAW
	 	 	68	 
	 	 	SECTION 14.9.	 	NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS
	 	 	69	 
	 	 	SECTION 14.10.	 	NO RECOURSE AGAINST OTHERS
	 	 	69	 
	 	 	SECTION 14.11.	 	SUCCESSORS
	 	 	69	 
	 	 	SECTION 14.12.	 	MULTIPLE COUNTERPARTS
	 	 	69	 
	 	 	SECTION 14.13.	 	SEPARABILITY
	 	 	69	 
	 	 	SECTION 14.14.	 	TABLE OF CONTENTS, HEADINGS, ETC
	 	 	69	 

-iv-

 

     CROSS-REFERENCE TABLE*

	 	 	 	 	 
	TIA	 	 	 	INDENTURE
	SECTION	 	 	 	SECTION
	Section	 	310
	 	14.1
	 	 	310(a)(1)
	 	9.10
	 	 	(a)(2)
	 	9.10
	 	 	(a)(3)
	 	N.A.**
	 	 	(a)(4)
	 	N.A.
	 	 	(a)(5)
	 	9.10
	 	 	(b)
	 	9.10
	 	 	(c)
	 	N.A.
	Section	 	311
	 	14.1
	 	 	311(a)
	 	9.11
	 	 	(b)
	 	9.11
	 	 	(c)
	 	N.A.
	Section	 	312
	 	14.1
	 	 	(a)
	 	2.5
	 	 	(b)
	 	14.3
	 	 	(c)
	 	14.3
	Section	 	313
	 	14.1
	 	 	313(a)
	 	9.6(a)
	 	 	(b)(1)
	 	N.A.
	 	 	(b)(2)
	 	9.6(a)
	 	 	(c)
	 	9.6(a)
	 	 	(d)
	 	N.A.
	Section	 	314
	 	14.1
	 	 	314(a)
	 	6.2
	 	 	(b)
	 	N.A.
	 	 	(c)(1)
	 	14.4(a)
	 	 	(c)(2)
	 	14.4(a)
	 	 	(c)(3)
	 	N.A.
	 	 	(d)
	 	N.A.
	 	 	(e)
	 	14.4(b)
	 	 	(f)
	 	N.A.
	Section	 	315
	 	14.1
	Section	 	316
	 	14.1
	Section	 	317
	 	14.1
	Section	 	318(c)
	 	14.1

	*	 	This Cross-Reference Table shall not, for any purpose, be deemed a part of this Indenture.
	**	 	N.A. means Not Applicable.

-v-

 

          THIS INDENTURE dated as of February 22, 2005 is between Sybase, Inc., a corporation duly
organized under the laws of the State of Delaware (the “Company”), and U.S. Bank National
Association, a national banking association organized and existing under the laws of the United
States, as Trustee (the “Trustee”).

          In consideration of the purchase of the Securities (as defined herein) by the Holders thereof,
both parties agree as follows for the benefit of the other and for the equal and ratable benefit of
the Holders of the Company’s 1.75% Convertible Subordinated Notes Due 2025.

ARTICLE 1

DEFINITIONS AND INCORPORATION BY REFERENCE

          SECTION 1.1. DEFINITIONS.

          “Affiliate” means, with respect to any specified person, 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
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” means any Registrar, Paying Agent or Conversion Agent.

          “Applicable Procedures” means, with respect to any transfer or exchange of beneficial
ownership interests in a Global Security, the rules and procedures of the Depositary, in each case
to the extent applicable to such transfer or exchange.

          “Board of Directors” means either the board of directors of the Company or any
committee of the Board of Directors authorized to act for it with respect to this Indenture;
provided that, for purposes of Section 3.7(b)(3) hereof, such term shall mean the board of
directors of the Company and not any committee thereof.

          “Business Day” means any weekday that is not a day on which banking institutions in
the City of New York are authorized or obligated by law or executive order to close or be closed.

          “Capital Stock” of any Person means any and all shares, interests, rights to purchase,
warrants, options, participations or other equivalents of or interests in (however designated)
equity of such Person, but excluding any debt securities convertible into such equity.

          “Cash” or “cash” means such coin or currency of the United States as at any
time of payment is legal tender for the payment of public and private debts.

          “Certificated Security” means a Security that is in substantially the form attached
hereto as Exhibit A that does not include the information or the schedule called for by
footnotes 1 and 3 thereof.

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

1

 

          “Common Stock” means the common stock of the Company, $0.001 par value per share, as
it exists on the date of this Indenture and any shares of any class or classes of capital stock of
the Company resulting from any reclassification or reclassifications thereof and which have no
preference in respect of dividends or of amounts payable in the event of any voluntary or
involuntary liquidation, dissolution or winding-up of the Company and which are not subject to
redemption by the Company; provided, however, that if at any time there shall be more than one such
resulting class, the shares of each such class then so issuable on conversion of Securities shall
be substantially in the proportion which the total number of shares of such class resulting from
all such reclassifications bears to the total number of shares of all such classes resulting from
all such reclassifications.

          “Company” means the party named as such in the first paragraph of this Indenture until
a successor replaces it pursuant to the applicable provisions of this Indenture, and thereafter
“Company” shall mean such successor Company.

          “Conversion Price” per share of Common Stock as of any day means the result obtained
by dividing (i) $1,000 by (ii) the then applicable Conversion Rate.

          “Conversion Rate” means the rate at which the Securities are convertible, which rate
shall be initially 39.6511 shares of Common Stock for each $1,000 principal amount of Securities,
as adjusted from time to time pursuant to the provisions of this Indenture.

          “Conversion Reference Period” means:

          (i) for Securities that are converted after the Company has specified a Redemption Date, the
30 consecutive Trading Days beginning on the third Trading Day following such Redemption Date (in
the case of securities being converted which were previously called for redemption; in the case of
a partial redemption, this clause (i) shall only apply to those Securities that are subject to
redemption;

          (ii) for Securities that are converted during the period beginning on the thirtieth day prior
to the Final Maturity Date, the 30 consecutive Trading Days beginning on the third Trading Day
following the Final Maturity Date; and

          (iii) in all other instances, the 30 consecutive Trading Days beginning on the third Trading
Day following the Conversion Date.

          “Conversion Value” means, for each $1,000 principal amount of Securities converted, an
amount equal to the product of (i) the Conversion Rate in effect on the Conversion Date and (ii)
the average of the Closing Prices of the Company’s Common Stock for each of the 30 consecutive
Trading Days of the Conversion Reference Period; provided that, after the consummation of a
Change in Control in which the consideration is comprised entirely of cash and the Securities
become convertible solely into cash, the amount in clause (ii) of this definition shall be the cash
price per share received by holders of the Company’s Common Stock in such Change in Control; and
provided further, that in the event of any conversion rate adjustment during the
Conversion Reference Period, from and after the effective date of such adjustment, the Conversion
Rate for purposes of clause (i) of this definition shall mean the Conversion Rate as so adjusted.

          “Corporate Trust Office” means the principal office of the Trustee at which at any
particular time its corporate trust business shall be administered which office at the date of the
execution of this Indenture is located at 633 West Fifth Street, 24th Floor, Los Angeles, CA
90071; Attention: Corporate Trust Services

2

 

(Sybase, Inc. — 1.75% Convertible Subordinated Notes Due 2025) or at any other time at such other address as the Trustee may designate from time to time
by notice to the Company.

          “Daily Share Amount” means, for each Trading Day of the Conversion Reference Period
and for each $1,000 principal amount of notes surrendered for conversion, a number of shares (but
in no event less than zero) equal to (i) the difference between (a) the Closing Price on such
Trading Day multiplied by the Conversion Rate in effect on the Conversion Date, appropriately
adjusted to take into account the occurrence on such Trading Day of any event which would require
an adjustment pursuant to Section 4.6, and (b) $1,000, divided by (ii) the Closing Price on such
Trading Day multiplied by 30.

          “Default” means, when used with respect to the Securities, any event which is or,
after notice or passage of time or both, would be an Event of Default.

          “Designated Senior Indebtedness” means the Company’s obligations under any particular
senior indebtedness that expressly provides that such senior indebtedness shall be “Designated
Senior Indebtedness” for purposes of this Indenture (provided that the instrument,
agreement or other document may place limitations and conditions on the right of senior
indebtedness to exercise the rights of Designated Senior Indebtedness).

          “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules
and regulations promulgated thereunder, as in effect from time to time.

          “Final Maturity Date” means February 22, 2025.

          “GAAP” means generally accepted accounting principles in the United States of America
as in effect from time to time, including those set forth in (1) the opinions and pronouncements of
the Accounting Principles Board of the American Institute of Certified Public Accountants, (2) the
statements and pronouncements of the Financial Accounting Standards Board, (3) such other
statements by such other entity as approved by a significant segment of the accounting profession
and (4) the rules and regulations of the SEC governing the inclusion of financial statements
(including pro forma financial statements) in registration statements filed under the Securities
Act and periodic reports required to be filed pursuant to Section 13 of the Exchange Act, including
opinions and pronouncements in staff accounting bulletins and similar written statements from the
accounting staff of the SEC.

          “Global Security” means a Security in global form that is in substantially the form
attached hereto as Exhibit A and that includes the information and schedule called for by
footnotes 1 and 3 thereof and which is deposited with the Depositary or its custodian and
registered in the name of the Depositary or its nominee.

          “Holder” or “Securityholder” means the person in whose name a Security is
registered on the Primary Registrar’s books.

          “indebtedness” means, with respect to any person, without duplication:

	 	•  	all obligations and other liabilities, contingent or otherwise, of such person for
borrowed money (including overdrafts) to the extent such obligations and other liabilities
would appear as a liability upon the consolidated balance sheet of such a person in
accordance with GAAP or for the deferred purchase price of property or services, excluding
any trade payables and other accrued current

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	 	   	liabilities incurred in the ordinary course of
business, but including, without limitation, all obligations, contingent or otherwise, of
such person in connection with any letters of credit and acceptances issued under letter of
credit facilities, acceptance facilities or other similar facilities;
	 
	 	•  	all obligations of such person evidenced by bonds, credit or loan agreements, notes,
debentures or other similar instruments to the extent such obligations would appear as a
liability upon the consolidated balance sheet of such person in accordance with GAAP;
	 
	 	•  	indebtedness of such person created or arising under any conditional sale or other title
retention agreement with respect to property acquired by such person (even if the rights
and remedies of the seller or lender under such agreement in the event of default are
limited to repossession or sale of such property) but excluding trade payables arising in
the ordinary course of business;
	 
	 	•  	all obligations and liabilities, contingent or otherwise, in respect of leases of the
person required, in conformity with GAAP, to be accounted for as capitalized lease
obligations on the consolidated balance sheet of the person;
	 
	 	•  	all net obligations of such person under or in respect of interest rate agreements,
currency agreements or other swap, cap, floor or collar agreements, hedge agreements,
forward contracts or similar instruments or agreements or foreign currency, hedge, exchange
or purchase or similar instruments or agreements;
	 
	 	•  	all indebtedness referred to in (but not excluded from) the preceding clauses of other
persons, the payment of which is secured by (or for which the holder of such indebtedness
has an existing right, contingent or otherwise, to be secured by) any lien or with respect
to property, including, without limitation, accounts and contract rights, owned by such
person, even though such person has not assumed or become liable for the payment of such
indebtedness (the amount of such obligation being deemed to be the lesser of the value of
such property or asset or the amount of the obligation so secured);
	 
	 	•  	all guarantees by such person of indebtedness referred to in this definition or of any
other person;
	 
	 	•  	any obligations as lessee under other leases for facilities, equipment or related
assets, whether or not capitalized, entered into or leased after the date of the indenture,
for financing purposes, as determined in good faith by such person; and
	 
	 	•  	any and all refinancings, replacements, deferrals, renewals, extensions and refundings
of or amendments, modifications or supplements to, any indebtedness, obligation or
liability of the kind described in the clauses above.

          “Indenture” means this Indenture as amended or supplemented from time to time pursuant
to the terms of this Indenture.

          “Initial Purchasers” means Lehman Brothers Inc. and Merrill Lynch, Pierce, Fenner &
Smith Incorporated.

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          “Interest Payment Date” means February 22 and August 22 of each year, commencing
August 22, 2005.

          “Liquidated Damages” has the meaning specified in the Registration Rights Agreement.
All references herein to interest accrued or payable as of any date shall include any Liquidated
Damages accrued or payable as of such date as provided in the Registration Rights Agreement.

          “Majority Owner” with respect to an entity means a person having “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 entity’s Capital Stock that are entitled to vote generally in the
election of directors.

          “Officer” means the Chairman or any Co-Chairman of the Board, any Vice Chairman of the
Board, the Chief Executive Officer, the President, any Vice President, the Chief Financial Officer,
the Controller, the Secretary, any Assistant Controller or any Assistant Secretary of the Company.

          “Officers’ Certificate” means a certificate signed by two Officers; provided, however,
that for purposes of Sections 4.11 and 6.3, “Officers’ Certificate” means a certificate
signed by the principal executive officer, principal financial officer or principal accounting
officer of the Company and by one other Officer.

          “opening of business” means 8:30 a.m., local time, in the City of New York.

          “Opinion of Counsel” means a written opinion from legal counsel. The counsel may be
an employee of or counsel to the Company or the Trustee.

          “Non-Payment Default” means any event of default with respect to any Designated Senior
Indebtedness other than any Payment Default pursuant to which the maturity thereof may be
accelerated.

          “Payment Default” shall mean a default in payment, whether at scheduled maturity, upon
scheduled installment, by acceleration or otherwise, of principal, or premium, if any, or interest
on Designated Senior Indebtedness beyond any applicable grace period.

          “Permitted Junior Securities” means any equity securities of the Company or any
successor obligor.

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

          “Principal” or “principal” of a debt security, including the Securities, means
the principal of the security plus, when appropriate, the premium, if any, on the security.

          “Public Acquirer Common Stock” has the meaning assigned to it in the definition of
Public Acquirer Change in Control.

          “Public Acquirer Change in Control” means any event constituting a Non-Stock Change in
Control in which the acquirer has a class of common stock traded on a U.S. national securities
exchange or quoted on the Nasdaq National Market or which will be so traded or quoted when issued
or exchanged in connection with such Change in Control (the “Public Acquirer Common
Stock”). If an acquirer does not itself have a class of common stock constituting Public
Acquirer Common Stock, it will be deemed to have Public Acquirer

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Common Stock if a corporation that directly or indirectly is the Majority Owner of the acquirer has a class of common stock
constituting Public Acquirer Common Stock; in such case, all references to Public Acquirer Common Stock shall refer to such class of common stock.

          “Redemption Date” when used with respect to any Security to be redeemed, means the
date fixed by the Company for such redemption pursuant to Section 3.

          “Registration Rights Agreement” means the Registration Rights Agreement dated, as of
February 22, 2005, between the Company and the Initial Purchasers.

          “Regular Record Date” means, with respect to each Interest Payment Date, the February
1 or August 1, as the case may be, next preceding such Interest Payment Date.

          “Restricted Global Security” means a Global Security that is a Restricted Security.

          “Restricted Security” means a Security required to bear the restricted legend called
for by footnote 2 in the form of Security set forth in Exhibit A of this Indenture.

          “Rule 144” means Rule 144 under the Securities Act or any successor to such Rule.

          “Rule 144A” means Rule 144A under the Securities Act or any successor to such Rule.

          “SEC” means the Securities and Exchange Commission.

          “Securities” means the 1.75% Convertible Subordinated Notes Due 2025 or any of them
(each, a “Security”), as amended or supplemented from time to time, that are issued under this
Indenture.

          “Securities Act” means the Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder, as in effect from time to time.

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

          “senior indebtedness” means the principal of, premium, if any, interest, including any
interest accruing after the commencement of any bankruptcy or similar proceeding, whether or not a
claim for post-petition interest is allowed as a claim in the proceeding, and rent payable on or in
connection with, and all fees, costs, expenses and other amounts accrued or due on or in connection
with, and all fees, costs, expenses and other amounts accrued or due on or in connection with, the
Company’s indebtedness, whether secured or unsecured, absolute or contingent, due or to become due,
outstanding on the date of the indenture or thereafter created, incurred, assumed, guaranteed or in
effect guaranteed by the Company, including all deferrals, renewals, extensions or refundings of,
or amendments, modifications or supplements to, the foregoing. Notwithstanding the foregoing,
“senior indebtedness” does not include:

	 	•  	indebtedness that expressly provides that such indebtedness shall not be senior
in right of payment to the Securities or expressly provides that such indebtedness
is on the same basis as or junior to the Securities; and

6

 

	 	•  	any indebtedness to any of the Company’s majority or wholly owned Subsidiaries,
other than indebtedness to the Company’s Subsidiaries arising by reason of
guarantees by the Company of indebtedness of such Subsidiary to a person that is
not the Company’s Subsidiary.

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

          “Subsidiary” means, in respect of any Person, any corporation, association,
partnership or other business entity of which more than 50% of the total voting power of shares of
Capital Stock or other interests (including partnership interests) entitled (without regard to the
occurrence of any contingency) to vote in the election of directors, managers, general partners or
trustees thereof is at the time owned or controlled, directly or indirectly, by (i) such Person;
(ii) such Person and one or more Subsidiaries of such Person; or (iii) one or more Subsidiaries of
such Person.

          “TIA” means the Trust Indenture Act of 1939, as amended, and the rules and regulations
thereunder as in effect on the date of this Indenture, except as provided in Section 11.3, and
except to the extent any amendment to the Trust Indenture Act expressly provides for application of
the Trust Indenture Act as in effect on another date.

          “Trading Day” means a day during which trading in securities generally occurs on the
New York Stock Exchange (or, if the Common Stock is not traded on the New York Stock Exchange, on
the principal other market on which the Common Stock is then traded), other than a day on which the
material suspension of or limitation on trading is imposed that affects either the New York Stock
Exchange (or, if applicable, such other market) in its entirety or only the shares of the Company’s
Common Stock (by reason of movements in price exceeding limits permitted by the relevant market on
which the shares are traded or otherwise) or on which the New York Stock Exchange (or, if
applicable, such other market) cannot clear the transfer of the Company’s shares due to an event
beyond the Company’s control.

          “Trading Price” of the Securities on any date of determination means the average of
the secondary market bid quotations per Security obtained by the Conversion 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 two independent nationally recognized securities dealers the Company
selects, which may include either or both of the Initial Purchasers, provided that, if at
least two such bids cannot be reasonably obtained by the Conversion Agent, but one such bid can be
reasonably obtained by the Conversion Agent, this one bid will be used. If the Conversion Agent
cannot reasonably obtain at least one bid for $5,000,000 principal amount of the Securities from a
nationally recognized securities dealer or, if in the Company’s reasonable judgment, the bid
quotations are not indicative of the secondary market value of the Securities, then the Trading
Price of the Securities will be deemed to be less than 98% of the then current Conversion Rate
multiplied by the Closing Price of Common Stock on such determination date.

          “Trustee” means the party named as such in the first paragraph of this Indenture until
a successor replaces it in accordance with the provisions of this Indenture, and thereafter means
the successor.

          “Trust Officer” means, with respect to the Trustee, any officer assigned to the
Corporate Trust Office, and also, with respect to a particular matter, any other officer to whom
such matter is referred because of such officer’s knowledge of and familiarity with the particular
subject.

7

 

          “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 1.2. OTHER DEFINITIONS.

	 	 	 
	Term	 	Defined in Section
	“Additional Common Stock”
	 	          4.1(i)
	“Agent Members”
	 	          2.1(b)
	“Bankruptcy Law”
	 	          8.1(a)
	“Cash Percentage”
	 	          4.14(b)
	“Change in Control”
	 	          3.7(b)
	“Change in Control Purchase Date”
	 	          3.7
	“Change in Control Purchase Notice”
	 	          3.7(e)
	“Change in Control Purchase Price”
	 	          3.7
	“Closing Price”
	 	          4.6(a)(8)
	“Company Change in Control Notice”
	 	          3.7(d)
	“Company Order”
	 	          2.2(e)
	“Company Put Right Notice”
	 	          3.11(b)
	“Conversion Agent”
	 	          2.3(a)
	“Conversion Date”
	 	          4.2(a)
	“Conversion Settlement Period”
	 	          4.2(a)
	“Current Market Price”
	 	          4.6(a)(8)
	“Custodian”
	 	          8.1(a)
	“DTC”
	 	          2.1(a)
	“Depositary”
	 	          2.1(a)
	“Determination Date”
	 	          4.6(a)(6)
	“Distributed Securities”
	 	          4.6(a)(4)
	“Distribution Notice”
	 	          4.1(b)
	“Effective Date”
	 	          4.1(i)
	“Event of Default”
	 	          8.1(a)
	“Expiration Date”
	 	          4.6(a)(7)
	“Expiration Time”
	 	          4.6(a)(7)
	“Legal Holiday”
	 	          14.7
	“Legend”
	 	          2.12(a)
	“Merger Notice”
	 	          4.1(c)
	“Non-Stock Change in Control”
	 	          4.1(i)
	“Non-Stock Change in Control Notice”
	 	          4.1(i)
	“Notice of Default”
	 	          8.1(b)
	“Paying Agent”
	 	          2.3(a)
	“Payment
Blockage Period”
	 	          13.3
	“Primary Registrar”
	 	          2.3(a)
	“Purchase Agreement”
	 	          2.1
	“Purchased Shares”
	 	          4.6(a)(7)
	“Put Right Purchase Date”
	 	          3.11(a)
	“Put Right Purchase Notice”
	 	          3.11(e)
	“Put Right Purchase Price”
	 	          3.11(a)
	“QIB”
	 	          2.1(a)

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	Term	 	Defined in Section
	“Redemption Price”
	 	          3.1(a)
	“Registrar”
	 	          2.3(a)
	“Remaining Shares”
	 	          4.14(b)
	“Rights”
	 	          4.6(a)(5)
	“Rights Plan”
	 	          4.6(a)(5)
	“Spinoff Securities”
	 	          4.6(a)(4)
	“Spinoff
Valuation Period”
	 	          4.6(a)(4)
	“Stock Price”
	 	          4.1(i)
	“tender offer”
	 	          4.6(a)(7)
	“Triggering Distribution”
	 	          4.6(a)(6)

          SECTION 1.3. TRUST INDENTURE ACT PROVISIONS.

          Whenever this Indenture refers to a provision of the TIA, that provision is incorporated by
reference in and made a part of this Indenture. This Indenture shall also include those provisions
of the TIA required to be included herein by the provisions of the Trust Indenture Reform Act of
1990. The following TIA terms used in this Indenture have the following meanings:

          “indenture securities” means the Securities;

          “indenture security holder” means a Securityholder;

          “indenture to be qualified” means this Indenture;

          “indenture trustee” or “institutional trustee” means the Trustee; and

          “obligor” on the indenture securities means the Company or any other obligor on the
Securities.

          All other terms used in this Indenture that are defined in the TIA, defined by TIA reference
to another statute or defined by any SEC rule and not otherwise defined herein have the meanings
assigned to them therein.

          SECTION 1.4. RULES OF CONSTRUCTION.

          (a) Unless the context otherwise requires:

          (1) a term has the meaning assigned to it;

          (2) an accounting term not otherwise defined has the meaning assigned to it in
accordance with GAAP;

          (3) words in the singular include the plural, and words in the plural include the singular;

          (4) provisions apply to successive events and transactions;

9

 

          (5) the term “merger” includes a statutory share exchange and the term “merged” has a
correlative meaning;

          (6) the masculine gender includes the feminine and the neuter;

          (7) references to agreements and other instruments include subsequent
amendments thereto; and

          (8) all “Article”, “Exhibit” and “Section” references are to Articles, Exhibits and
Sections, respectively, of or to this Indenture unless otherwise specified herein, and the
terms “herein,” “hereof” and other words of similar import refer to this Indenture as a
whole and not to any particular Article, Section or other subdivision.

ARTICLE 2

THE SECURITIES

          SECTION 2.1. FORM AND DATING.

          The Securities and the Trustee’s certificate of authentication shall be substantially in the
respective forms set forth in Exhibit A, which Exhibit is incorporated in and made part of
this Indenture. The Securities may have notations, legends or endorsements required by law, stock
exchange or automated quotation system rule or regulation or usage. The Company shall provide any
such notations, legends or endorsements to the Trustee in writing. Each Security shall be dated
the date of its authentication. The Securities are being offered and sold by the Company pursuant
to a Purchase Agreement dated February 15, 2005 (the “Purchase Agreement”) between the
Company and the Initial Purchasers, in transactions exempt from, or not subject to, the
registration requirements of the Securities Act.

          (a) Restricted Global Securities. All of the Securities are initially being offered
and sold by the Company to the Initial Purchasers for resale to qualified institutional buyers as
defined in Rule 144A (collectively, “QIBs” or individually, each a “QIB”) in
reliance on Rule 144A under the Securities Act and shall be issued initially in the form of one or
more Restricted Global Securities, which shall be deposited on behalf of the purchasers of the
Securities represented thereby with the Trustee, at its Corporate Trust Office, as custodian for
the depositary, The Depository Trust Company (“DTC”, and such depositary, or any successor
thereto, being hereinafter referred to as the “Depositary”), and registered in the name of
its nominee, Cede & Co. (or any successor thereto), for the accounts of participants in the
Depositary duly executed by the Company and authenticated by the Trustee as hereinafter provided.
The aggregate principal amount of the Restricted Global Securities may from time to time be increased or decreased by
adjustments made on the records of the Securities Custodian as hereinafter provided, subject in
each case to compliance with the Applicable Procedures.

          (b) Global Securities In General. Each Global Security shall represent such of the
outstanding Securities as shall be specified therein and each shall provide that it shall represent
the aggregate amount of outstanding Securities from time to time endorsed thereon and that the
aggregate amount of outstanding Securities represented thereby may from time to time be reduced or
increased, as appropriate, to reflect replacements, exchanges, purchases, redemptions, or
conversions of such Securities. Any adjustment of the aggregate principal amount of a Global
Security to reflect the amount of any increase or decrease in the amount of outstanding Securities
represented thereby shall be made by the Trustee in accordance with

10

 

instructions given by the Holder thereof as required by Section 2.12 hereof and shall be made on the records of the Trustee
and the Depositary.

          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
under the Global Security, and the Depositary (including, for this purpose, its nominee) may be
treated by the Company, the Trustee and any agent of the Company or the Trustee as the absolute
owner and Holder of such Global Security for all purposes whatsoever. Notwithstanding the
foregoing, nothing herein shall (1) 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 (2) impair, as between the Depositary and its Agent Members, the operation of
customary practices governing the exercise of the rights of a Holder of any Security.

          (c) Book Entry Provisions. The Company shall execute and the Trustee shall, in
accordance with this Subsection 2.1(c), authenticate and deliver initially one or more Global
Securities that (1) shall be registered in the name of the Depositary or its nominee, (2) shall be
delivered by the Trustee to the Depositary or pursuant to the Depositary’s instructions and (3)
shall bear legends substantially to the following effect:

“UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY 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 THE
DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN. THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE
INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE THEREOF. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE
NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND, UNLESS AND UNTIL IT IS EXCHANGED IN
WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS SECURITY MAY NOT BE
TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A
NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR
ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A
SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.”

          SECTION 2.2. EXECUTION AND AUTHENTICATION.

          (a) The aggregate principal amount of Securities which may be authenticated and delivered
under this Indenture is limited to $460,000,000 except as provided in Sections 2.6 and 2.7.

11

 

          (b) Two Officers shall sign the Securities for the Company by manual or facsimile signature,
one of whom shall be the Secretary or an Assistant Secretary of the Company. Typographic and other
minor errors or defects in any such facsimile signature shall not affect the validity or
enforceability of any Security that has been authenticated and delivered by the Trustee.

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

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

          (e) The Trustee shall authenticate and make available for delivery Securities for original
issue in the aggregate principal amount of up to $460,000,000 upon receipt of a written order or
orders of the Company signed by an Officer of the Company (a “Company Order”). The Company
Order shall specify the amount of Securities to be authenticated, shall provide that all such
Securities will be represented by a Restricted Global Security and the date on which each original
issue of Securities is to be authenticated.

          (f) The Trustee shall act as the initial authenticating agent. Thereafter, the Trustee may
appoint an authenticating agent acceptable to the Company to authenticate Securities. An
authenticating agent may authenticate Securities whenever the Trustee may do so. Each reference in
this Indenture to authentication by the Trustee includes authentication by such agent. An
authenticating agent shall have the same rights as an Agent to deal with the Company or an
Affiliate of the Company.

          (g) The Securities shall be issuable only in registered form without coupons and only in
denominations of $1,000 principal amount and any integral multiple thereof.

          SECTION 2.3. REGISTRAR, PAYING AGENT AND CONVERSION AGENT.

          (a) The Company shall maintain one or more offices or agencies where Securities may be
presented for registration of transfer or for exchange (each, a “Registrar”), one or more
offices or agencies where Securities may be presented for payment (each, a “Paying Agent”),
one or more offices or agencies where Securities may be presented for conversion (each, a
“Conversion Agent”) and one or more offices or agencies where notices and demands to or
upon the Company in respect of the Securities and this Indenture
may be served. The Company will at all times maintain a Paying Agent, Conversion Agent,
Registrar and an office or agency where notices and demands to or upon the Company in respect of
the Securities and this Indenture may be served in the Borough of Manhattan, The City of New York.
One of the Registrars (the “Primary Registrar”) shall keep a register of the Securities and
of their transfer and exchange.

          (b) The Company shall enter into an appropriate agency agreement with any Agent not a party to
this Indenture. The agreement shall implement the provisions of this Indenture that relate to such
Agent. The Company shall notify the Trustee of the name and address of any Agent not a party to
this Indenture. If the Company fails to maintain a Registrar, Paying Agent, Conversion Agent or
agent for service of notices and demands in any place required by this Indenture, or fails to give
the foregoing notice, the Trustee shall act as such. The Company or any Affiliate of the Company
may act as Paying Agent (except for the purposes of Section 6.1 and Article 10), Conversion Agent
and Registrar.

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          (c) The Company hereby initially designates the Trustee as Paying Agent, Registrar, Securities
Custodian and Conversion Agent, and each of the Corporate Trust Office of the Trustee and the
office or agency of U.S. Bank Trust National Association, an Affiliate of the Trustee, in the
Borough of Manhattan, The City of New York, one such office or agency of the Company for each of
the aforesaid purposes.

          SECTION 2.4. PAYING AGENT TO HOLD MONEY IN TRUST.

          Prior to 11:00 a.m., New York City time, on each due date of the principal of, or interest on,
any Securities, the Company shall deposit with a Paying Agent a sum sufficient to pay such
principal or interest so becoming due. Subject to Section 10.2, a Paying Agent shall hold in trust
for the benefit of Securityholders or the Trustee all money held by the Paying Agent for the
payment of principal of, or interest on, the Securities, and shall notify the Trustee of any
failure by the Company (or any other obligor on the Securities) to make any such payment. If the
Company or an Affiliate of the Company acts as Paying Agent, it shall, before 11:00 a.m., New York
City time, on each due date of the principal of, or interest on, any Securities, segregate the
money and hold it as a separate trust fund. The Company at any time may require a Paying Agent to
pay all money held by it to the Trustee, and the Trustee may at any time during the continuance of
any Default, upon written request to a Paying Agent, require such Paying Agent to pay forthwith to
the Trustee all sums so held in trust by such Paying Agent. Upon doing so, the Paying Agent (other
than the Company) shall have no further liability for the money.

          SECTION 2.5. SECURITYHOLDER LISTS.

          The Trustee shall preserve in as current a form as is reasonably practicable the most recent
list available to it of the names and addresses of Securityholders. If the Trustee is not the
Primary Registrar, the Company shall furnish to the Trustee on or before each semiannual Interest
Payment Date and at such other times as the Trustee may request in writing, a list in such form and
as of such date as the Trustee may reasonably require of the names and addresses of
Securityholders.

          SECTION 2.6. TRANSFER AND EXCHANGE.

          (a) Subject to compliance with any applicable additional requirements contained in Section
2.12, when a Security is presented to a Registrar with a request to register a transfer thereof or
to exchange such Security for an equal principal amount of Securities of other authorized
denominations, the Registrar shall register the transfer or make the exchange as requested;
provided, however, that every Security presented or surrendered for registration of transfer or
exchange shall be duly endorsed or accompanied by an assignment form and, if applicable, a transfer
certificate each in the form included in Exhibit A, and in form satisfactory to the
Registrar duly executed by the Holder thereof or its attorney duly authorized in writing. To
permit registration of transfers and exchanges, upon surrender of any Security for registration of
transfer or exchange at an office or agency maintained pursuant to Section 2.3, the Company shall
execute and the Trustee shall authenticate Securities of a like aggregate principal amount at the
Registrar’s request. Any exchange or transfer shall be without charge, except that the Company or
the Registrar may require payment of a sum sufficient to cover any tax or other governmental charge
that may be imposed in relation thereto, and provided, that this sentence shall not apply to any
exchange pursuant to Section 2.10, 2.12(a), 3.6, 3.12, 4.2(e) or 11.5.

          (b) Neither the Company, any Registrar nor the Trustee shall be required to exchange or
register a transfer of (1) any Securities for a period of 15 days next preceding mailing of a
notice of Securities to be redeemed, (2) any Securities or portions thereof selected or called for
redemption (except in the case of

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redemption of a Security in part, the portion thereof not to be
redeemed) or (3) any Securities or portions thereof in respect of which a Change in Control
Purchase Notice has been delivered and not withdrawn by the Holder thereof (except, in the case of
the purchase of a Security in part, the portion thereof not to be purchased).

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

          (d) Any Registrar appointed pursuant to Section 2.3 hereof shall provide to the Trustee such
information as the Trustee may reasonably require in connection with the delivery by such Registrar
of Securities upon transfer or exchange of Securities.

          (e) Each Holder of a Security agrees to indemnify the Company and the Trustee against any
liability that may result from the transfer, exchange or assignment of such Holder’s Security in
violation of any provision of this Indenture and/or applicable United States federal or state
securities law.

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

          SECTION 2.7. REPLACEMENT SECURITIES.

          (a) If any mutilated Security is surrendered to the Company, a Registrar or the Trustee, or
the Company, a Registrar and the Trustee receive evidence to their satisfaction of the destruction,
loss or theft of any Security, and there is delivered to the Company, the applicable Registrar and
the Trustee such security or indemnity as will be required by them to save each of them harmless,
then, in the absence of notice to the Company, such Registrar or the Trustee that such Security has
been acquired by a bona fide purchaser, the Company shall execute, and upon its written request the
Trustee shall authenticate and deliver, in exchange for any such mutilated Security or in lieu of
any such destroyed, lost or stolen Security, a new Security of like tenor and principal amount,
bearing a number not contemporaneously outstanding.

          (b) In case any such mutilated, destroyed, lost or stolen Security has become or is about to
become due and payable, or is about to be purchased or redeemed by the Company pursuant to Article
3, or converted pursuant to Article 4, the Company in its discretion may, instead of issuing a new
Security, pay, redeem, purchase or convert such Security, as the case may be.

          (c) Upon the issuance of any new Securities under this Section 2.7, the Company may require
the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed
in relation thereto and any other reasonable expenses (including the reasonable fees and expenses
of the Trustee or the Registrar) in connection therewith.

          (d) Every new Security issued pursuant to this Section 2.7 in lieu of any mutilated,
destroyed, lost or stolen Security shall constitute an original additional contractual obligation
of the Company, whether

14

 

or not the mutilated, destroyed, lost or stolen Security shall be at any
time enforceable by anyone, and shall be entitled to all benefits of this Indenture equally and
proportionately with any and all other Securities duly issued hereunder.

          (e) The provisions of this Section 2.7 are (to the extent lawful) 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 2.8. OUTSTANDING SECURITIES.

          (a) Securities outstanding at any time are all Securities authenticated by the Trustee, except
for those canceled by it, those redeemed or purchased pursuant to Article 3, those converted
pursuant to Article 4, those delivered to the Trustee for cancellation or surrendered for transfer
or exchange and those described in this Section 2.8 as not outstanding.

          (b) If a Security is replaced pursuant to Section 2.7, it ceases to be outstanding unless the
Company receives proof satisfactory to it that the replaced Security is held by a bona fide
purchaser.

          (c) If a Paying Agent (other than the Company or an Affiliate of the Company) holds in respect
of the outstanding Securities on a Redemption Date, a Change in Control Purchase Date or the Final
Maturity Date money sufficient to pay the principal of (including premium, if any) and accrued
interest on Securities (or portions thereof) payable on that date, then on and after such
Redemption Date, Change in Control Purchase Date, or the Final Maturity Date, as the case may be,
such Securities (or portions thereof, as the case may be) shall cease to be outstanding and
interest on them shall cease to accrue; provided that if such
Securities are to be redeemed, notice of such redemption has been duly given pursuant to this
Indenture or provision thereof satisfactory to the Trustee has been made.

          (d) Subject to the restrictions contained in Section 2.9, a Security does not cease to be
outstanding because the Company or an Affiliate of the Company holds the Security.

          SECTION 2.9. TREASURY SECURITIES.

          In determining whether the Holders of the required principal amount of Securities have
concurred in any notice, direction, waiver or consent, Securities owned by the Company or any other
obligor on the Securities or by any Affiliate of the Company or of such other obligor shall be
disregarded, except that, for purposes of determining whether the Trustee shall be protected in
relying on any such notice, direction, waiver or consent, only Securities which a Trust Officer of
the Trustee actually knows are so owned shall be so disregarded. Securities so owned which have
been pledged in good faith shall not be disregarded if the pledgee establishes to the satisfaction
of the Trustee the pledgee’s right so to act with respect to the Securities and that the pledgee is
not the Company or any other obligor on the Securities or any Affiliate of the Company or of such
other obligor.

          SECTION 2.10. TEMPORARY SECURITIES.

          Until definitive Securities are ready for delivery, the Company may prepare and execute, and,
upon receipt of a Company Order, the Trustee shall authenticate and deliver, temporary Securities.
Temporary Securities shall be substantially in the form of definitive Securities but may have
variations that the Company with the consent of the Trustee considers appropriate for temporary
Securities. Without unreasonable delay,

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the Company shall prepare and the Trustee shall
authenticate and deliver definitive Securities in exchange for temporary Securities.

          SECTION 2.11. CANCELLATION.

          The Company at any time may deliver Securities to the Trustee for cancellation. The
Registrar, the Paying Agent and the Conversion Agent shall forward to the Trustee or its agent any
Securities surrendered to them for transfer, exchange, redemption, purchase, payment or conversion.
The Trustee and no one else shall cancel, in accordance with its standard procedures, all
Securities surrendered for transfer, exchange, redemption, purchase, payment, conversion or
cancellation and shall dispose of the cancelled Securities in accordance with its customary
procedures or deliver the canceled Securities to the Company. All Securities which are redeemed,
purchased or otherwise acquired by the Company or any of its Subsidiaries prior to the Final
Maturity Date shall be delivered to the Trustee for cancellation, and the Company may not hold or
resell such Securities or issue any new Securities to replace any such Securities or any Securities
that any Holder has converted pursuant to Article 4.

          SECTION 2.12. LEGEND; ADDITIONAL TRANSFER AND EXCHANGE REQUIREMENTS.

          (a) If Securities are issued upon the transfer, exchange or replacement of Securities subject
to restrictions on transfer and bearing the legends called for by footnote 2 set forth on the forms
of Securities attached hereto as Exhibit A (collectively, the “Legend”), or if a
request is made to remove the Legend on a Security, the Securities so issued shall bear the Legend,
or the Legend shall not be removed, as the case may be, unless there is delivered to the Company
and the Registrar such satisfactory evidence, which shall include an opinion of counsel if
requested by the Company or such Registrar, as may be reasonably required by the Company and the
Registrar, that neither the Legend nor the restrictions on transfer set forth therein are required
to ensure that transfers thereof comply with the provisions of Rule 144A or Rule 144 or that such
Securities are not “restricted” within the meaning of Rule 144; provided that no such
evidence need be supplied in connection with the sale of such Security pursuant to a registration
statement that is effective at the time of such sale. Upon (1) provision of such satisfactory
evidence if requested, or (2) notification by the Company to the Trustee and Registrar of the sale
of such Security pursuant to a registration statement that is effective at the time of such sale,
the Trustee, at the written direction of the Company, shall authenticate and deliver a Security
that does not bear the Legend. If the Legend is removed from the face of a Security and the
Security is subsequently held by an Affiliate of the Company, the Legend shall be reinstated.

          (b) A Global Security may not be transferred, in whole or in part, to any Person other than
the Depositary or a nominee or any successor thereof, and no such transfer to any such other Person
may be registered; provided that the foregoing shall not prohibit any transfer of a
Security that is issued in exchange for a Global Security but is not itself a Global Security. No
transfer of a Security to any Person shall be effective under this Indenture or the Securities
unless and until such Security has been registered in the name of such Person. Notwithstanding any
other provisions of this Indenture or the Securities, transfers of a Global Security, in whole or
in part, shall be made only in accordance with this Section 2.12.

          (c) Subject to the succeeding paragraph, every Security shall be subject to the restrictions
on transfer provided in the Legend other than a Restricted Global Security. Whenever any
Restricted Security other than a Restricted Global Security is presented or surrendered for
registration of transfer or for exchange

16

 

for a Security registered in a name other than that of the Holder, such Security must be accompanied by a certificate in substantially the form set forth in
Exhibit A, dated the date of such surrender and signed by the Holder of such Security, as
to compliance with such restrictions on transfer. The Registrar shall not be required to accept for
such registration of transfer or exchange any Security not so accompanied by a properly completed
certificate.

          (d) The restrictions imposed by the Legend upon the transferability of any Security shall
cease and terminate when such Security has been sold pursuant to an effective registration
statement under the Securities Act or transferred in compliance with Rule 144 or, if earlier, upon
the expiration of the holding period applicable to sales thereof under Rule 144(k). Any Security as
to which such restrictions on transfer shall have expired in accordance with their terms or shall
have terminated may, upon a surrender of such Security for exchange to the Registrar in accordance
with the provisions of this Section 2.12 (accompanied, in the event that such restrictions on
transfer have terminated by reason of a transfer in compliance with Rule 144, by, if requested by
the Company or the Registrar, an opinion of counsel reasonably acceptable to the Company and
addressed to the Company in form acceptable to the Company, to the effect that the transfer of such
Security has been made in compliance with Rule 144), be exchanged for a new Security, of like tenor
and aggregate principal amount, which shall not bear the restrictive Legend. The Company shall
inform the Trustee of the effective date of any registration statement registering the resale of
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 opinion of counsel or
registration statement.

As used in the preceding Subsections 2.12(c) and (d), the term “transfer” encompasses any sale,
pledge, transfer, hypothecation or other disposition of any Security.

          (e) The provisions below shall apply only to Global Securities:

               (1) Notwithstanding any other provisions of this Indenture or the Securities, a Global
Security shall not be exchanged in whole or in part for a Security registered in the name of any
Person other than the Depositary or one or more nominees thereof, provided that a Global
Security may be exchanged for Securities registered in the names of any person designated by the
Depositary in the event that (A) the Depositary has notified the Company that it is unwilling or
unable to continue as Depositary for such Global Security or such Depositary has ceased to be a
“clearing agency” registered under the Exchange Act, and a successor Depositary is not appointed by
the Company within 90 days, (B) the Company has provided the Depositary with written notice that it
has decided to discontinue use of the system of book-entry transfer through the Depositary or any
successor Depositary or (C) an Event of Default has occurred and is continuing with respect to the
Securities. Any Global Security exchanged pursuant to subclauses (A) or (B) immediately above shall
be so exchanged in whole and not in part, and any Global Security exchanged pursuant to subclause
(C) above may be exchanged in whole or from time to time in part as directed by the Depositary. Any
Security issued in exchange for a Global Security or any portion thereof shall be a Global
Security; provided that any such Security so issued that is registered in the name of a
Person other than the Depositary or a nominee thereof shall not be a Global Security.

               (2) Securities issued in exchange for a Global Security or any portion thereof shall be issued
in definitive, fully registered form, without interest coupons, shall have an aggregate principal
amount equal to that of such Global Security or portion thereof to be so exchanged, shall be
registered in such names and be in such authorized denominations as the Depositary shall designate
and shall bear the applicable legends provided for herein. Any Global Security to be exchanged in
whole shall be surrendered by the Depositary to the Trustee, as Registrar. With regard to any
Global Security to be exchanged in part, either

17

 

such Global Security shall be so surrendered for exchange or, if the Trustee is acting as custodian for the Depositary or its nominee with respect
to such Global Security, the principal amount thereof shall be reduced, by an amount equal to the
portion thereof to be so exchanged, by means of an appropriate adjustment made on the records of
the Trustee. Upon any such surrender or adjustment, the Trustee shall authenticate and deliver the
Security issuable on such exchange to or upon the order of the Depositary or an authorized
representative thereof.

               (3) Subject to the provisions of clause (5) of this Subsection 2.12(e), the registered Holder
may grant proxies and otherwise authorize any Person, including Agent Members and persons that may
hold interests through Agent Members, to take any action which a Holder is entitled to take under
this Indenture or the Securities.

               (4) In the event of the occurrence of any of the events specified in clause (1) of this
Subsection 2.12(e) above, the Company will promptly make available to the Trustee a reasonable
supply of Certificated Securities in definitive, fully registered form, without interest coupons.

               (5) Neither Agent Members nor any other Persons on whose behalf Agent Members may act shall
have any rights under this Indenture with respect to any Global Security registered in the name of
the Depositary or any nominee thereof, or under any such Global Security, and the Depositary or
such nominee, as the case may be, may be treated by the Company, the Trustee and any agent of the
Company or the Trustee as the absolute owner and holder of such Global 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 such nominee, as the case may be, or impair, as
between the Depositary, its Agent Members and any other Person on whose behalf an Agent Member may
act, the operation of customary practices of such Persons governing the exercise of the rights of a
holder of any Security.

          SECTION 2.13. CUSIP NUMBERS.

          The Company in issuing the Securities may use one or more “CUSIP” numbers (if then generally
in use), and, if so, the Trustee shall use “CUSIP” numbers in notices of redemption or purchase 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 or purchase and that reliance may be placed only on the other
identification numbers printed on the Securities, and any such redemption or purchase 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 3

REDEMPTION AND PURCHASE

          SECTION 3.1. TO REDEEM; NOTICE TO TRUSTEE.

          (a) Prior to March 1, 2010, the Securities shall not be redeemable. The Company may, at its
option, redeem the Securities at any time on or after March 1, 2010 in whole, or from time to time
in part (which must be equal to $1,000 or any integral multiple thereof), at a Redemption Price in
cash equal to 100% of the principal amount of the Securities being redeemed, plus accrued and
unpaid interest to, but excluding, the Redemption Date (the “Redemption Price”);
provided that if the Redemption Date falls after a Regular

18

 

Record Date and on or before an Interest Payment Date, then the interest will be payable to the Holders in whose names the
Securities are registered at the close of business on such Regular Record Date and the term
Redemption Price shall not include such interest. Securities or portions of the Securities called
for redemption shall be convertible by the Holder in accordance with the provisions of Article 4
until the close of business on the Business Day prior to the Redemption Date.

          (b) If the Company elects to redeem Securities pursuant to this Section 3.1, it shall notify
the Trustee at least 35 days prior to the Redemption Date as fixed by the Company (unless a shorter
notice shall be satisfactory to the Trustee) of the Redemption Date and the principal amount of
Securities to be redeemed. If fewer than all of the Securities are to be redeemed, the record date
relating to such redemption shall be selected by the Company and given to the Trustee, which record
date shall not be less than five days after the date of notice to the Trustee.

          SECTION 3.2. SELECTION OF SECURITIES TO BE REDEEMED.

          (a) If less than all of the Securities are to be redeemed, unless the procedures of the
Depositary provide otherwise, the Trustee shall, at least 30 days but not more than 60 days prior
to the Redemption Date, select the Securities to be redeemed. The Trustee shall make the selection
from the Securities outstanding and not previously called for redemption by lot, or in its
discretion, on a pro rata basis. Securities in denominations of $1,000 may only be redeemed in
whole. The Trustee may select for redemption portions (equal to $1,000 or any integral multiple
thereof) of the principal of Securities that have denominations larger than $1,000. Provisions of
this Indenture that apply to Securities called for redemption also apply to portions of Securities
called for redemption.

          (b) If any Security selected for partial redemption is converted in part before termination of
the conversion right with respect to the portion of the Security so selected, the converted portion
of such Security shall be deemed to be the portion selected for redemption. Securities which have
been converted subsequent to the Trustee commencing selection of Securities to be redeemed but
prior to redemption of such Securities shall be treated by the Trustee as outstanding for the
purpose of such selection.

          SECTION 3.3. NOTICE OF REDEMPTION.

          (a) At least 30 days but not more than 60 days before a Redemption Date, the Company shall
give notice of redemption in accordance with Section 14.2 to each Holder of Securities to be
redeemed at such Holder’s address as it appears on the Registrar’s books.

          (b) The notice shall identify the Securities (including CUSIP numbers) to be redeemed and
shall state:

               (1) the Redemption Date;

               (2) the Redemption Price;

               (3) the then effective Conversion Price and Conversion Rate;

               (4) the name and address of each Paying Agent and Conversion Agent;

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               (5) that Securities called for redemption must be presented and surrendered to a Paying Agent
to collect the Redemption Price;

               (6) that Holders who wish to convert Securities must surrender such Securities for conversion
no later than the close of business on the Business Day immediately preceding the Redemption Date
and must satisfy the other requirements set forth in paragraph 9 of the Securities and Article 4
hereof;

               (7) that, unless the Company defaults in making the payment of the Redemption Price, interest
on Securities called for redemption shall cease to accrue on and after the Redemption Date and the
only remaining right of the Holder shall be to receive payment of the Redemption Price plus any
accrued and unpaid interest payable to such Holder upon presentation and surrender to a Paying Agent of
the Securities; and

               (8) if any Security is being redeemed in part, the portion of the principal amount of such
Security to be redeemed and that, after the Redemption Date, upon presentation and surrender of
such Security, a new Security or Securities in aggregate principal amount equal to the unredeemed
portion thereof will be issued.

          (c) If any of the Securities to be redeemed is in the form of a Global Security, then the
Company shall modify such notice to the extent necessary to accord with the procedures of the
Depositary applicable to redemptions.

          At the Company’s request, which request shall (1) be irrevocable once given and (2) set forth
all relevant information required by clauses (1) through (8) of Subsection 3.3(b), the Trustee
shall give such notice of redemption to each Holder on behalf of the Company and at the Company’s
expense; provided, however, that, in all cases, the text of such notice of
redemption shall be prepared by the Company.

          SECTION 3.4. EFFECT OF NOTICE OF REDEMPTION.

          Once notice of redemption is given, Securities called for redemption become due and payable on
the Redemption Date and at the Redemption Price stated in the notice, except for Securities that
are converted in accordance with the provisions of Article 4. On or after the Redemption Date and
upon presentation and surrender to a Paying Agent, Securities called for redemption shall be paid
at the Redemption Price.

          SECTION 3.5. DEPOSIT OF REDEMPTION PRICE.

          Prior to 11:00 a.m., New York City time, on the Redemption Date, the Company shall deposit
with a Paying Agent (or, if the Company acts as Paying Agent, shall segregate and hold in trust) an
amount of money (in immediately available funds if deposited on such Redemption Date) sufficient to
pay the Redemption Price of all Securities to be redeemed on that date, other than Securities or
portions thereof called for redemption on that date which have been delivered by the Company to the
Trustee for cancellation or have been converted. The Paying Agent shall as promptly as practicable
return to the Company any money not required for that purpose because of the conversion of
Securities pursuant to Article 4 or, if such money is then held by the Company in trust and is not
required for such purpose, it shall be discharged from the trust.

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          SECTION 3.6. SECURITIES REDEEMED IN PART.

          Upon presentation and surrender of a Security that is redeemed in part, the Company shall
execute and the Trustee shall authenticate and deliver to the Holder a new Security equal in
principal amount to the unredeemed portion of the Security surrendered.

          SECTION 3.7. PURCHASE OF SECURITIES AT OPTION OF THE HOLDER UPON CHANGE IN CONTROL.

          If at any time the Securities remain outstanding there shall have occurred a Change in
Control, all or any portion of the Securities of any Holder equal to $1,000 or a integral multiple
of $1,000, shall be purchased by the Company, at the option of such Holder, at a purchase price in
cash equal to 100% of the principal amount of the Securities to be purchased, together with
interest accrued and unpaid to, but excluding, the Change in Control Purchase Date (the “Change
in Control Purchase Price”), on the date (the “Change in Control Purchase Date”) that
is 30 days after the date of the Company Change in Control Notice; provided,
however, if the Change in Control Purchase Date is an Interest Payment Date, then interest
on the Securities shall be payable to the Holders in whose name the Securities are registered at
the close of business on such Regular Record Date, and the term Change in Control Purchase Price
shall not include such interest.

          (a) Whenever in this Indenture (including Sections 2.1, 8.1 and 8.7 hereof) or in the form of
Securities there is a reference, in any context, to the principal of any Securities as of any time,
such reference shall be deemed to include reference to the Change in Control Purchase Price payable
in respect to such Securities to the extent that such Change in Control Purchase Price is, was or
would be so payable at such time, and express mention of the Change in Control Purchase Price in
any provision of this Indenture shall not be construed as excluding the Change in Control Purchase
Price in those provisions of this Indenture when such express mention is not made.

          (b) A “Change in Control” of the Company, or any successor entity that is subject to
the terms of this Indenture, shall be deemed to have occurred at such time after the original
issuance of Securities as any of the following events shall occur:

               (1) the acquisition by any person of beneficial ownership, directly or indirectly, through a
purchase, merger (except a merger or consolidation described in subclause (2) of this Subsection)
or other acquisition transaction or series of transactions, of shares of the Capital Stock of the
Company entitling that person to exercise 50% or more of the total voting power of all shares of
such Capital Stock entitled to vote generally in elections of directors, other than any acquisition
by the Company, any of its Subsidiaries or any employee benefit plans of the Company;

               (2) any merger or consolidation of the Company with or into any other person, any merger of
another person into the Company, or any conveyance, transfer, sale, lease or other disposition of
all or substantially all of the Company’s properties and assets to another person (other than to
one or more wholly-owned Subsidiaries of the Company), other than:

               (A) any transaction pursuant to which holders of the Capital Stock of the Company
immediately prior to the transaction are entitled to exercise, directly or indirectly, 50%
or more of the total voting power of all shares of the Capital Stock of the Company entitled
to vote generally in the

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election of directors of the continuing or surviving person
immediately after the transaction in substantially the same proportion as such ownership
immediately prior to such transaction; or

               (B) any merger solely for the purpose of changing the Company’s jurisdiction of
incorporation and resulting in a reclassification, conversion or exchange of outstanding shares of Common Stock solely into shares of common stock of the surviving entity;

          (3) during any consecutive two-year period, individuals who at the beginning of that two-year
period constituted the Board of Directors (together with any new directors whose election to the
Board of Directors, or whose nomination for election by the stockholders of the Company, was
approved by a vote of a majority of the directors then still in office who were either directors at
the beginning of such period or whose election or nomination for election were previously so
approved) cease to constitute a majority of the Board of Directors then in office; or

          (4) a resolution is passed by the Company’s stockholders approving a plan of liquidation or
dissolution of the Company.

          For purposes hereof, beneficial ownership shall be determined in accordance with Rule 13d-3
promulgated by the SEC under the Exchange Act. In determining the beneficial ownership of a
person, the term “person” shall include any syndicate or group that would be deemed to be a
“person” under Section 13(d)(3) of the Exchange Act.

          (c) Notwithstanding anything to the contrary set forth in this Section 3.7, a Change in
Control will be deemed not to have occurred if either:

          (1) the Closing Price of Common Stock for any five Trading Days during the 10 Trading
Days immediately preceding the effective date of the Change in Control is at least equal to
110% of the Conversion Price in effect on such day; or

          (2) in the case of a merger or consolidation, more than 90% of the consideration
(excluding cash payments for fractional shares and cash payments made pursuant to
dissenters’ appraisal rights) in a merger or consolidation otherwise constituting a Change
in Control consists of shares of common stock, depositary receipts, ordinary shares or other
certificates representing common equity interests traded on a U.S. national securities
exchange or quoted on the Nasdaq National Market, or will be so traded or quoted immediately
following such merger or consolidation, and as a result of such merger or consolidation the
notes become convertible in accordance with Section 4.11 hereof into cash in an amount equal
to the lesser of $1,000 and the Conversion Value and, if the Conversion Value is greater
than $1,000, payment of the excess value in the form of cash or such common stock,
depositary receipts, ordinary shares or other certificates representing common equity
interests.

          (d) Within 30 days after the occurrence of a Change in Control, the Company, or, at the
written request and expense of the Company, the Trustee, shall give notice of the Change in Control
(the “Company Change in Control Notice”) to the Trustee (if the Trustee does not mail such
notice) and to each Holder (and to beneficial owners as required by applicable law) in accordance
with Section 14.2. The Company Change in Control Notice shall include the form of a Change in
Control Purchase Notice to be completed by the Holder and shall state:

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          (1) the date of such Change in Control and, briefly, the events causing such Change in
Control;

          (2) the date by which the Change in Control Purchase Notice pursuant to this Section 3.7
must be given;

          (3) the Change in Control Purchase Date;

          (4) the Change in Control Purchase Price;

          (5) the Holder’s right to require the Company to purchase the Securities;

          (6) briefly, the conversion rights of the Securities;

          (7) the name and address of each Paying Agent and Conversion Agent and that the Securities
must be surrendered to the Paying Agent to collect payment;

          (8) the then effective Conversion Price and Conversion Rate;

          (9) the procedures that the Holder must follow to exercise conversion rights under Article
4 and that Securities as to which a Change in Control Purchase Notice has been given may be
converted pursuant to Article 4 of this Indenture only to the extent that the Change in Control
Purchase Notice has been withdrawn in accordance with the terms of this Indenture;

          (10) the procedures that the Holder must follow to exercise rights under this Section 3.7;

          (11) the procedures for withdrawing a Change in Control Purchase Notice, including a form
of notice of withdrawal; and

          (12) whether such notice constitutes a Non-Stock Change in Control Notice in accordance
with Section 4.1(i).

If any of the Securities is in the form of a Global Security, then the Company shall modify the
Company Change in Control Notice to the extent necessary to accord with the procedures of the
Depositary applicable to the purchase of Global Securities.

          (e) A Holder may exercise its rights specified in Subsection (a) of this Section 3.7 upon
delivery of a written notice (which shall be in substantially the form included in Exhibit
A hereto and which may be delivered by letter, overnight courier, hand delivery, facsimile
transmission or in any other written form and, in the case of Global Securities, may be delivered
electronically or by other means in accordance with the Depositary’s customary procedures) of the
exercise of such rights (a “Change in Control Purchase Notice”) together with the
Securities with respect to which such rights are being exercised to any Paying Agent at any time
prior to the close of business on the Business Day next preceding the Change in Control Purchase
Date.

               (1) The delivery of such Security to any Paying Agent on or prior to the close of business on
the Business Day next preceding the Change in Control Purchase Date (together with all necessary
endorsements) at the office of such Paying Agent shall be a condition to the receipt by the Holder
of the Change in Control Purchase Price therefor.

23

 

               (2) The Company shall only be obliged to purchase pursuant to this Section 3.7, a portion of a
Security if the principal amount of such portion is $1,000 or an integral multiple of $1,000.
Provisions of this Indenture that apply to the purchase of all of a Security also apply to the
purchase of such portion of such Security.

               (3) Notwithstanding anything herein to the contrary, any Holder delivering to a Paying Agent
the Change in Control Purchase Notice contemplated by this Subsection 3.7(e) shall have the right
to withdraw such Change in Control Purchase Notice in whole or in a portion thereof that is a
principal amount of $1,000 or in an integral multiple thereof at any time prior to the close of
business on the Business Day next preceding the Change in Control Purchase Date by delivery of a
written notice of withdrawal to the Paying Agent in accordance with Section 3.8.

               (4) A Paying Agent shall promptly notify the Company of the receipt by it of any Change in
Control Purchase Notice or written withdrawal thereof.

               (5) Anything herein to the contrary notwithstanding, in the case of Global Securities, any
Change in Control Purchase Notice may be delivered or withdrawn and such Securities may be
surrendered or delivered for purchase in accordance with the Applicable Procedures as in effect
from time to time.

          SECTION 3.8. EFFECT OF CHANGE IN CONTROL PURCHASE NOTICE.

          (a) Upon receipt by any Paying Agent of a properly completed Change in Control Purchase Notice
and Securities from a Holder in accordance with Section 3.7(e), the Holder of the Security in
respect of which such Change in Control Purchase Notice was given shall (unless such Change in
Control Purchase Notice is withdrawn as specified below) thereafter be entitled to receive the
Change in Control Purchase Price with respect to such Security. Such Change in Control Purchase
Price shall be paid to such Holder promptly following the Change in Control Purchase Date with
respect to such Security (provided that the conditions in Subsection 3.7(e) have been
satisfied). Securities in respect of which a Change in Control Purchase Notice has been given by
the Holder thereof may not be converted pursuant to Article 4 on or after the date of the delivery
of such Change in Control Purchase Notice unless such Change in Control Purchase Notice has first
been validly withdrawn in accordance with Subsection 3.8 (b) with respect to the Securities to be
converted.

          (b) A Change in Control Purchase Notice may be withdrawn by means of a written notice (which
may be delivered by mail, overnight courier, hand delivery, facsimile transmission or in any other
written form and, in the case of Global Securities, may be delivered electronically or by other
means in accordance with the Depositary’s customary procedures) of withdrawal delivered by the
Holder to a Paying Agent at any time prior to the close of business on the Business Day immediately
preceding the Change in Control Purchase Date, specifying the principal amount of the Security or
portion thereof (which must be a principal amount of $1,000 or an integral multiple of $1,000 in
excess thereof) with respect to which such notice of withdrawal is being submitted, the certificate
number (if in certificated form) of the Securities so withdrawn and the amount of Securities (if
any) that remain subject to the Change in Control Purchase Notice.

          SECTION 3.9. DEPOSIT OF CHANGE IN CONTROL PURCHASE PRICE.

          (a) On or before 11:00 a.m. New York City time on the Change in Control Purchase Date, the
Company shall deposit with the Trustee or with a Paying Agent (other than the Company or an
Affiliate of the Company) an amount of money (in immediately available funds if deposited on such
Change in Control Purchase Date) sufficient to pay the aggregate Change in Control Purchase Price
of all the Securities or

24

 

portions thereof that are to be purchased on such Change in Control Purchase Date. The manner in which the deposit required by this Section 3.9 is made by the Company
shall be at the option of the Company, provided that such deposit shall be made in a manner such that the Trustee or a Paying Agent shall have
immediately available funds on the Change in Control Purchase Date.

          (b) If a Paying Agent holds, in accordance with the terms hereof, money sufficient to pay the
Change in Control Purchase Price of any Security for which a Change in Control Purchase Notice has
been tendered and not withdrawn in accordance with this Indenture then, on the Change in Control
Purchase Date, such Security will cease to be outstanding and the rights of the Holder in respect
thereof shall terminate (other than the right to receive the Change in Control Purchase Price as
aforesaid). The Company shall publicly announce the principal amount of Securities repurchased on
or as soon as practicable after the Change in Control Purchase Date.

          SECTION 3.10. REPAYMENT TO THE COMPANY.

          To the extent that the aggregate amount of cash deposited by the Company pursuant to Section
3.9 exceeds the aggregate Change in Control Purchase Price of the Securities or portions thereof
that the Company is obligated to purchase, then promptly after the Change in Control Purchase Date
the Trustee or a Paying Agent, as the case may be, shall return any such excess cash to the
Company.

          SECTION 3.11. PURCHASE OF SECURITIES AT OPTION OF THE HOLDER ON SPECIFIED DATES.

          (a) Securities shall be purchased in cash in whole or in part (which must be equal to $1,000
or any integral multiple thereof) by the Company, at the option of Holders, in accordance with the
provisions of this Section 3.11 and paragraph 8 of the Securities promptly after February 22, 2010,
February 22, 2015 and February 22, 2020 (each, a “Put Right Purchase Date”), at a purchase
price per Security in cash equal to 100% of the aggregate principal amount of the Security,
together with any accrued and unpaid interest if any up to but not including the applicable Put
Right Purchase Date (the “Put Right Purchase Price”).

          (b) The Company shall give written notice of the applicable Put Right Purchase Date in
accordance with Section 14.2 to the Trustee and to each Holder (at its address shown in the
register of the Registrar) not less than 20 Business Days prior to each Put Right Purchase Date
(the “Company Put Right Notice”). Each Company Put Right Notice shall include a form of
Put Right Purchase Notice to be completed by a Holder and shall state:

          (1) the Put Right Purchase Price, the Put Right Purchase Date and the Conversion Price and
Conversion Rate then in effect;

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

          (3) that Securities as to which a Put Right Purchase Notice has been given may be converted
if they are otherwise convertible only in accordance with Article 4 hereof and paragraph 9 of
the Securities only to the extent that the Put Right Purchase Notice has been withdrawn in
accordance with the terms of this Indenture;

          (4) that Securities must be surrendered to the Paying Agent to collect payment;

25

 

          (5) that the Put Right Purchase Price for any Security as to which a Put Right Purchase
Notice has been given and not withdrawn will be paid promptly following the later of the Put
Right Purchase Date and the time of surrender of such Security as described in subclause (4)
above;

          (6) the procedures the Holder must follow to exercise rights under this Section and a brief
description of those rights;

          (7) briefly, the conversion rights of the Securities;

          (8) the procedures for withdrawing a Put Right Purchase Notice as set forth in Subsection
3.11(g);

          (9) that, unless the Company fails to pay such Put Right Purchase Price on Securities for
which a Put Right Purchase Notice has been submitted, such Securities shall no longer be
outstanding and interest on such Securities will cease to accrue on and after the Put Right
Purchase Date; and

          (10) the CUSIP number of the Securities.

          (c) If any of the Securities are to be redeemed in the form of a Global Security, the Company
shall modify such Company Put Right Notice to the extent necessary to accord with the procedures of
the Depositary applicable to repurchases.

          (d) At the Company’s request, the Trustee shall give such Company Put Right Notice on behalf
of the Company and at the Company’s expense; provided, however, that, in all cases,
the text of such Company Put Right Notice shall be prepared by the Company.

          (e) To exercise its rights pursuant to this Section 3.11, the Holder shall deliver to the
Paying Agent a written notice of purchase in the form set forth in Exhibit A attached
hereto (a “Put Right Purchase Notice”) at any time from the opening of business on the date
that is 20 Business Days prior to the applicable Put Right Purchase Date until the close of
business on the Put Right Purchase Date stating:

          (1) if certificated Securities have been issued, the certificate number of the Security
which the Holder will deliver to be purchased (or if the Securities are not certificated,
the Put Right Purchase Notice must comply with the procedures of the Depositary applicable
to purchases),

          (2) the portion (which may be 100%) of the principal amount of the Security which the
Holder will deliver to be purchased, which portion must be in a principal amount of $1,000
or an integral multiple thereof, and

          (3) that such Security shall be purchased as of the applicable Put Right Purchase Date
pursuant to the terms and conditions in this Section 3.11.

          (f) The Company shall purchase all Securities with respect to which a Put Right Purchase
Notice is given and not withdrawn, upon the later of the applicable Put Right Purchase Date and
delivery of such Securities to the Paying Agent (together with all necessary endorsements) at the
offices of the Paying Agent (if the Securities are not certificated, such delivery must comply with
the procedures of the Depositary applicable to purchases). Delivery of such Security shall be a condition to receipt by the
Holder of the Put Right Purchase Price therefor. The Put Right Purchase Price shall be paid
pursuant to this Section 3.11 only

26

 

if the Security delivered to the Paying Agent conforms in all
respects to the description thereof in the related Put Right Purchase Notice, as determined by the
Company.

          (g) Notwithstanding anything herein to the contrary, any Holder delivering to the Paying Agent
the Put Right Purchase Notice contemplated by this Section 3.11 shall have the right to withdraw
such Put Right Purchase Notice at any time prior to the close of business on the Put Right Purchase
Date by delivery of a written notice of withdrawal to the Paying Agent specifying:

          (1) the certificate number, if any, of the Security in respect of which such notice of
withdrawal is being submitted (or, if the Securities are not certificated, the withdrawal notice
must comply with the procedures of the Depositary applicable to withdrawals),

          (2) the aggregate principal amount of the Security (which must be equal to $1,000 or any
integral multiple thereof) with respect to which such notice of withdrawal is being submitted,
and

          (3) the aggregate principal amount, if any, of such Security which remains subject to the
original Put Right Purchase Notice and which has been or will be delivered for purchase by the
Company.

          (h) The Paying Agent shall promptly notify the Company of the receipt by it of any Put Right
Purchase Notice or written notice of withdrawal thereof.

          (i) On or before 5:00 p.m. (local time in the City of New York) on the Business Day following
the Put Right Purchase Date, the Company shall deposit with the Trustee or with the Paying Agent
(or if the Company or an Affiliate of the Company is acting as the Paying Agent, shall segregate
and hold in trust as provided in Section 2.4) an amount of money (in immediately available funds if
deposited on or after such Put Right Purchase Date) sufficient to pay the aggregate Put Right
Purchase Price of all the Securities or portions thereof which are to be purchased as of the Put
Right Purchase Date. The manner in which the deposit required by this Section 3.11(i) is made by
the Company shall be at the option of the Company; provided that such deposit shall be made
in a manner such that the Trustee or a Paying Agent shall have immediately available funds by the
close of business on the Business Day after the Put Right Purchase Date.

          (1) If a Paying Agent holds, in accordance with the terms hereof, money sufficient to pay
the Put Right Purchase Price of any Security for which a Put Right Purchase Notice has been
tendered and not withdrawn on the Put Right Purchase Date, then, on the close of business on the
Business Day after the Put Right Purchase Date, such Security will cease to be outstanding, and
interest shall cease to accrue on such Security whether or not the Security is delivered to the
Paying Agent, and the rights of the Holder in respect thereof shall terminate (other than the
right to receive the Put Right Purchase Price as aforesaid).

          (2) The Put Right Purchase Price shall be paid to such Holder with respect to Securities
for which a Put Right Purchase Notice has been tendered and not withdrawn, subject to receipt of
funds by the Paying Agent, promptly following the later of (A) the Business Day after the Put
Right Purchase Date with respect to such Security (provided that the conditions in
Subsection 3.11(f) have been satisfied) and (B) the time of delivery of such Security to the
Paying Agent by the Holder thereof in the manner required by Section 3.11(f). Securities in
respect of which a Put Right Purchase Notice has been given by the Holder thereof, if
convertible pursuant to Article 4 hereof, may not be converted on or after the date of
the delivery of such Put Right Purchase Notice, unless such Put Right Purchase Notice has
first been validly withdrawn as specified in Subsection 3.11(g).

27

 

          (3) To the extent that the aggregate amount of cash deposited by the Company pursuant to
this Subsection 3.11(i) exceeds the aggregate Put Right Purchase Price of the Securities or
portions thereof that the Company is obligated to purchase, then promptly after the Put Right
Purchase Date the Trustee or a Paying Agent, as the case may be, shall return any such excess
cash to the Company.

          (j) The Company shall only be obligated to purchase, pursuant to this Section 3.11, a portion
of a Security if the principal amount of such portion is $1,000 or an integral multiple of $1,000.
Provisions of this Indenture that apply to the purchase of all of a Security also apply to the
purchase of such portion of such Security.

          (k) Upon receipt by the Paying Agent of the Put Right Purchase Notice specified in subsection
3.11 (f), the Holder of the Security in respect of which such Put Right Purchase Notice was given
shall (unless such Put Right Purchase Notice is withdrawn as specified herein) thereafter be
entitled to receive solely the Put Right Purchase Price with respect to such Security.

          SECTION 3.12. SECURITIES PURCHASED IN PART.

          Any Security that is to be purchased only in part shall be surrendered at the office of a
Paying Agent, and promptly after the Change in Control Purchase Date or the Put Right Purchase
Date, as the case may be, the Company shall execute and the Trustee shall authenticate and deliver
to the Holder of such Security, without service charge, a new Security or Securities, of such
authorized denomination or denominations as may be 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 that is not purchased.

          SECTION 3.13. COMPLIANCE WITH SECURITIES LAWS UPON PURCHASE OF SECURITIES

          In connection with any offer to purchase of Securities under Section 3.7 or Section 3.11, the
Company shall (a) comply with Rule 13e-4 and Rule 14e-1 (or any successor to either such Rule), if
applicable, under the Exchange Act, (b) file the related Schedule TO (or any successor or similar
schedule, form or report) if required under the Exchange Act, and (c) otherwise comply with all
federal and state securities laws in connection with such offer to purchase or purchase of
Securities, all so as to permit the rights of the Holders and obligations of the Company under
Sections 3.7 through 3.11 to be exercised in the time and in the manner specified therein.

          SECTION 3.14. PURCHASE OF SECURITIES IN OPEN MARKET

          The Company (a) shall, on or prior to the date that is two years from the latest issuance of
any Securities in accordance with Section 2.11 surrender any Security purchased by the Company
pursuant to this Article 3 to the Trustee for cancellation, and (b) after such date, may (the
extent permitted by applicable law) reissue or sell such Security or surrender such Security to the
Trustee for cancellation as aforesaid. Any Securities surrendered to the Trustee for cancellation may not be reissued or resold by the
Company and will be canceled promptly in accordance with Section 2.11.

28

 

ARTICLE 4

CONVERSION

          SECTION 4.1. CONVERSION PRIVILEGE AND CONVERSION RATE.

          (a) Subject to and upon compliance with the provisions of this Article and the Securities, at
the option of the Holder thereof, any Security or portion thereof that is an integral multiple of
$1,000 principal amount may be converted on or prior to the close of business on the Final Maturity
Date, unless previously redeemed by the Company or purchased by the Company at the Holders’ option,
at the Conversion Rate in effect at the time of conversion and subject to the adjustments described
below, into the kind and amount of consideration determined in accordance with Section 4.14 hereof
only under the following circumstances:

          (1) prior to March 31, 2023, on any date during any fiscal quarter (and only during such
fiscal quarter) after the fiscal quarter ending March 31, 2005 if the Closing Price per share of
the Common Stock was more than 130% of the then current Conversion Price for at least 20 Trading
Days in the period of the 30 consecutive Trading Days ending on the last Trading Day of the
previous fiscal quarter;

          (2) on or after March 31, 2023, at all times on or after any date thereafter on which the
Closing Price per share of the Common Stock is more than 130% of the then current Conversion
Price of the Securities;

          (3) with respect to Securities called for redemption by the Company pursuant to Section
3.1, until the close of business on the Business Day prior to the Redemption Date;

          (4) if the Company distributes to all or substantially all holders of Common Stock rights,
options or warrants (other than pursuant to a Rights Plan) entitling them to purchase Common
Stock at less than the Closing Price per share of the Common Stock on the day preceding the
declaration for such distribution;

          (5) if the Company distributes to all or substantially all holders of Common Stock cash,
assets, debt securities or capital stock (other than pursuant to a Rights Plan, share split of
Common Stock or a dividend or distribution on its Common Stock in shares of Common Stock), which
distribution has a per share value as determined by the Board of Directors exceeding 10% of the
Closing Price per share of the Common Stock on the day preceding the declaration for such
distribution;

          (6) (i) if the Company becomes a party to a consolidation, merger or binding share exchange
pursuant to which all or substantially all of the Company’s Common Stock would be converted to
cash, securities or other property, (ii) if a Change in Control occurs , or (iii) if an event
occurs that would have been a Change in Control but for the existence of one of the Change in
Control exceptions set forth in Section 3.7(c) of this Indenture, other than in the case of (i)
or (iii) an event described in clauses (A) or (B) of Section 3.7(b)(2); or

          (7) during the five consecutive Business Day period after any five consecutive Trading Day
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 described below in Section
4.1(d)(ii), for each Trading Day of such five Trading Day period was less than 98% of the
product of the average of the

29

 

Closing Prices of the Common Stock for such five Trading Day period and the then current Conversion Rate.

          (b) In the case of a distribution contemplated by clauses (4) and (5) of Section 4.1(a), the
Company shall notify Holders at least 20 days prior to the ex-dividend date (the first date on
which the Common Stock trades, regular way, on the relevant market from which the Closing Price was
obtained without the right to receive such right, warrant, dividend or distribution) for such
distribution (the “Distribution Notice”). Once the Company has given the Distribution
Notice, Holders may surrender their Securities for conversion at any time until the earlier of (i)
the close of business on the Business Day next preceding the ex-dividend date and (ii) the
Company’s announcement that such distribution will not take place. In the event of a distribution
contemplated by clauses (4) and (5) of Section 4.1(a), Holders may not convert the Securities if
the Holders may otherwise participate in such distribution without converting their Securities.
The Company will provide written notice to the Conversion Agent as soon as reasonably practicable
of any anticipated or actual event or transaction that will cause or causes the Securities to
become convertible pursuant to clauses (4) or (5) of Section 4.1(a).

          (c) In the case of a transaction contemplated by clause (6) of Section 4.1(a) the Company will
notify Holders (i) at least 25 days prior to the anticipated effective date of such transaction if
such anticipated effective date is known to the Company or (ii) if such anticipated effective date
is not known to the Company prior to such 25th day, then within five Trading Days after the Company
becomes aware of such transaction (the “Merger Notice”). Holders may surrender Securities
for conversion at any time from and after the date which is 15 days prior to the anticipated
effective date of such transaction or after delivery of the Merger Notice in accordance with clause
(ii) of the preceding sentence if such delivery occurs after such 15th day; provided,
however, that Holders’ rights to convert Securities shall terminate upon notice by the
Company to the Holders that such contemplated transaction will not occur.

          (d) (i) For each fiscal quarter of the Company commencing prior to March 31, 2023, beginning
with the fiscal quarter ending June 30, 2005, the Conversion Agent, on behalf of the Company, will
determine, on the first Business Day following the last Trading Day of the prior fiscal quarter,
whether the Securities are convertible pursuant to clause (1) of Section 4.1(a), and, if so, will
notify the Trustee and the Company in writing. From April 1, 2023, the Conversion Agent will
determine, on behalf of the Company, on a daily basis, whether the Securities are convertible
pursuant to clause (2) of Subsection 4.1(a) and, if so, will notify the Trustee and the Company in
writing.

          (ii) The Trustee shall have no obligation to determine the Trading Price of the Securities and
whether the Securities are convertible pursuant to clause (7) of Section 4.1(a) unless the Company
has requested such determination; and the Company shall have no obligation to make such request
unless a Holder of the Securities provides the Company with reasonable evidence that the Trading
Price per $1,000 principal amount of Securities is reasonably likely to be less than 98% of the
product of the Closing Price of our Common Stock and the Conversion Rate then in effect per $1,000
principal amount of Securities. At such time, the Company shall instruct the Trustee to determine
the Trading Price of the Securities beginning on the next Trading Day and on each successive
Trading Day for 10 consecutive Trading Days to determine whether the Trading Prices for the
Securities for each Trading Day in any five consecutive Trading Day period within such 10 Trading
Day period is less than 98% of the product of (A) the average of the Closing Prices of the
Common Stock for such five Trading Day Period and (B) the then current Conversion Rate, and to
notify the Company accordingly.

30

 

          (e) The conversion rights pursuant to this Article 4 shall commence on the initial issuance
date of the Securities and expire at the close of business on the Final Maturity Date, but shall be
exercisable only upon the occurrence of and during the time periods specified with respect to each
circumstance pursuant to which the Securities become convertible pursuant to Section 4.1(a),
subject, in the case of conversion of any Global Security, to any Applicable Procedures. If a
Security is called for redemption or submitted or presented for purchase pursuant to Article 3,
such conversion right shall terminate at the close of business on the Business Day immediately
preceding the Redemption Date, Put Right Purchase Date or Change in Control Purchase Date, as the
case may be, for such Security (unless the Company shall fail to make the Redemption Price, Put
Right Purchase Price, or Change in Control Purchase Price payment when due in accordance with
Article 3, in which case the conversion right shall terminate at the close of business on the date
such failure is cured and such Security is redeemed or purchased, as the case may be). Securities
in respect of which a Change in Control Purchase Notice or a Put Right Purchase Notice, as the case
may be, has been delivered may not be surrendered for conversion pursuant to this Article 4 prior
to a valid withdrawal of such Change in Control Purchase Notice or Put Right Purchase Notice, as
the case may be, in accordance with the provisions of Article 3.

          (f) Provisions of this Indenture that apply to conversion of all of a Security also apply to
conversion of a portion of a Security.

          (g) A Holder of Securities is not entitled to any rights of a holder of Common Stock until
such Holder has converted its Securities into Common Stock, and only to the extent such Securities
are converted into Common Stock pursuant to this Article 4.

          (h) [Reserved]

          (i) Subject to Section 4.11 and Section 4.15, if a Holder elects to convert a Security within
30 days after the date of the Non-Stock Change In Control Notice in connection with a Change in
Control as described in clauses (1), (2) or (4) of Section 3.7(b) (or in connection with a
transaction that would have been a Change in Control under such clauses (1), (2) or (4) but for the
provisions of Section 3.7(c)(1), pursuant to which 10% or more of the consideration for the Common
Stock (other than cash payments for fractional shares and cash payments made in respect of
dissenters’ appraisal rights) in such transaction consists of cash or securities (or other
property) that are not traded or scheduled to be traded immediately following such transaction on a
U.S. national securities exchange or The Nasdaq National Market (a “Non-Stock Change In
Control”), the Company will increase the Conversion Rate for the Securities converted during
such 30-day period by an amount expressed as a number of shares of Common Stock (the
“Additional Common Stock”) determined by reference to the table below, based on the date on
which the Non-Stock Change In Control becomes effective (the “Effective Date”) and the
price (the “Stock Price”) paid per share for the Common Stock in the Non-Stock Change In
Control. If Holders of Common Stock receive only cash in the Non-Stock Change In Control, the Stock
Price shall be the cash amount paid per share of Common Stock. Otherwise, the Stock Price shall be
the average of the Closing Prices of the Common Stock on the five Trading Days prior to but not
including the Effective Date of such Non-Stock Change In Control.

          The Stock Prices and number of shares of Additional Common Stock set forth in the table below
will be adjusted as of any date on which the Conversion Rate is adjusted. On such date, the Stock
Prices shall be adjusted by multiplying:

          (1) the Stock Prices applicable immediately prior to such adjustment, by

31

 

          (2) a fraction, of which

          (A) the numerator shall be the Conversion Rate immediately prior to the adjustment
giving rise to the Stock Price adjustment, and

          (B) the denominator shall be the Conversion Rate as so adjusted.

          The number of shares of Additional Common Stock shall be correspondingly adjusted in the same
manner as the adjustments to the Conversion Rate described in Section 4.6.

          The following table sets forth the increase in the Conversion Rate for the Securities
converted during the 30-day period after the date of the Non-Stock Change in Control Notice,
expressed as the number of shares of Additional Common Stock per $1,000 principal amount of notes
converted:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Stock Price	 
	Effective Date	 	$18.68	 	 	$25.00	 	 	$30.00	 	 	$35.00	 	 	$40.00	 	 	$45.00	 	 	$50.00	 	 	$55.00	 	 	$60.00	 	 	$65.00	 	 	$70.00	 	 	$75.00	 	 	$80.00	 
	February 22, 2005
	 	 	13.88	 	 	 	7.23	 	 	 	4.64	 	 	 	3.11	 	 	 	2.17	 	 	 	1.55	 	 	 	1.13	 	 	 	0.84	 	 	 	0.62	 	 	 	0.47	 	 	 	0.35	 	 	 	0.26	 	 	 	0.20	 
	March 1, 2006
	 	 	13.79	 	 	 	6.83	 	 	 	4.21	 	 	 	2.73	 	 	 	1.84	 	 	 	1.28	 	 	 	0.91	 	 	 	0.66	 	 	 	0.48	 	 	 	0.35	 	 	 	0.26	 	 	 	0.19	 	 	 	0.14	 
	March 1, 2007
	 	 	13.69	 	 	 	6.31	 	 	 	3.66	 	 	 	2.23	 	 	 	1.43	 	 	 	0.95	 	 	 	0.65	 	 	 	0.45	 	 	 	0.32	 	 	 	0.24	 	 	 	0.17	 	 	 	0.12	 	 	 	0.09	 
	March 1, 2008
	 	 	13.53	 	 	 	5.55	 	 	 	2.89	 	 	 	1.59	 	 	 	0.93	 	 	 	0.58	 	 	 	0.37	 	 	 	0.26	 	 	 	0.18	 	 	 	0.13	 	 	 	0.09	 	 	 	0.07	 	 	 	0.04	 
	March 1, 2009
	 	 	13.31	 	 	 	4.29	 	 	 	1.72	 	 	 	0.72	 	 	 	0.34	 	 	 	0.19	 	 	 	0.12	 	 	 	0.09	 	 	 	0.06	 	 	 	0.05	 	 	 	0.03	 	 	 	0.02	 	 	 	0.01	 
	March 1, 2010
	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 

          The exact Stock Price and Effective Date may not be set forth on the table; in which
case, if the Stock Price is:

	 	1.  	between two Stock Prices on the table or the Effective Date is between two
dates on the table, the number of shares of Additional Common Stock will be determined
by straight-line interpolation between the number of shares of Additional Common Stock
set forth for the higher and lower Stock Prices and the two Effective Dates, as
applicable, based on a 360-day year.
	 
	 	2.  	in excess of $80.00 per share (subject to adjustment), no increase in the
Conversion Rate will be made;
	 
	 	3.  	less than $18.68 per share (subject to adjustment), no increase in the
Conversion Rate will be made.

          Notwithstanding the foregoing, in no event will the Conversion Rate exceed 53.5331 except to
give effect to adjustments to the Conversion Rate as set forth in Section 4.6(a)(1)-(4). In any
event, the Conversion Rate will not be adjusted pursuant to this Section 4.1(i) in connection with
a Change in Control or in connection with a transaction that would have been a Change in Control
under clauses (1), (2) or (4) of Section 3.7(b) but for the provisions of Section
3.7(c) (1) occurring on or after March 1, 2010.

          The Company shall give notice (the “Non-Stock Change in Control Notice”) to all
Holders of such Non-Stock Change in Control as part of the Company Change in Control Notice in
accordance with Section 3.7(d). Subject to Section 4.15, Holders that convert Securities in
accordance with the requirements

32

 

of Section 4.2(a) at any time after the Company gives the
Non-Stock Change in Control Notice until the Change in Control Purchase Date with respect to such
Change in Control will receive the benefit of the Conversion Rate adjustment with respect to the
securities so converted pursuant to this Section 4.1(i).

          SECTION 4.2. CONVERSION PROCEDURE.

          (a) To convert a Security, a Holder must (1) complete and manually sign the conversion notice
on the back of the Security and deliver such notice to a Conversion Agent, (2) surrender the
Security to a Conversion Agent, (3) furnish appropriate endorsements and transfer documents if
required by a Registrar or a Conversion Agent, and (4) pay any transfer or similar tax or interest,
if required. The date on which the Holder satisfies all of those requirements is the
“Conversion Date.” Upon the conversion of a Security, the Company will pay the cash and
deliver the shares of Common Stock, if any, deliverable upon conversion in accordance with the
terms of this Article 4, as promptly as practicable after the end of the Conversion Reference
Period with respect to the converted Securities, but (subject to the proviso to this sentence) in
no event later than ten Trading Days after the expiration of such Conversion Reference Period (such
tenth Business Day marking the end of the “Conversion Settlement Period”); provided,
however, that upon the conversion of any Securities (other than any Securities converted (i) on
or after the thirtieth day prior to the Final Maturity Date or (ii) after the Company has specified
a Redemption Date (or in the event of a partial redemption, Securities converted that are subject
to redemption)), if the Company has not satisfied its conversion obligations in full by the
expiration of the Conversion Settlement Period, then the Company shall pay interest on the
unsatisfied portion of its conversion obligation with respect to the converted Securities at the
then-effective 3 Month London Inter-Bank Offering Rate plus 2%, retroactive to the Conversion Date
until the conversion obligation is paid in full, and shall pay the cash and deliver the shares of
Common Stock, if any, due upon conversion as promptly as practicable thereafter, but in no event
later than twenty days after expiration of the Conversion Settlement Period (or, if the twentieth
day of such period is not a Business Day, then on the next Business Day). Anything herein to the
contrary notwithstanding, in the case of Global Securities, conversion notices may be delivered and
such Securities may be surrendered for conversion in accordance with the Applicable Procedures as
in effect from time to time.

          (b) To the extent the Company elects to satisfy any of its conversion obligations through
delivery of shares of Common Stock the Person in whose name such shares of Common Stock are
issuable shall be deemed to be a holder of record of such Common Stock on the expiration of the
Conversion Reference Period. As of the Conversion Date, such person shall no longer be a Holder of
any Security converted on such Conversion Date. No payment will be made for dividends or
distributions declared or made on shares of Common Stock issuable upon conversion of a Security
prior to the issuance of such shares, and Holders will not be entitled to receive any dividends or
distributions payable to holders of Common Stock as of any record date before the close of business
on the Conversion Date; provided, however, that if any dividends or distributions are declared or
made on shares of Common Stock between the Conversion Date and the expiration of the Conversion
Reference Period, then upon the expiration of the Conversion Reference Period, the Holders of any
shares of Common Stock issued upon conversion shall be entitled to such dividends or distributions
with respect to the shares of Common Stock so issued.

          (c) Securities surrendered for conversion (in whole or in part) during the period from the
close of business on any Regular Record Date to the opening of business on the next succeeding
Interest Payment Date (excluding (1) Securities or portions thereof called for redemption or
presented for purchase pursuant to Article 3 hereof on a Redemption Date, a Change in Control
Purchase Date or Put Right Purchase Date, as the case may be, occurring during the period beginning
at the close of business on a Regular Record Date and ending at the opening of business on the
fifth Business Day after the next succeeding Interest Payment Date

33

 

or (2) Securities that are submitted for conversion between the Regular Record Date for the final interest payment and the
opening of business on the final Interest Payment Date) shall also be accompanied by payment in
funds acceptable to the Company of an amount equal to the interest payable on such corresponding
Interest Payment Date on the principal amount of such Security then being converted, and such
interest shall be payable to the registered Holder of such Security as of that Regular Record Date
notwithstanding the conversion of such Security, subject to the provisions of this Indenture
relating to the payment of defaulted interest by the Company. Except as otherwise provided in this
Section 4.2, no payment or adjustment will be made for accrued interest on a converted Security.

          (d) Nothing in this Section shall affect the right of a Holder in whose name any Security is
registered at the close of business on a Regular Record Date to receive the interest payable on
such Security on the related Interest Payment Date in accordance with the terms of this Indenture,
the Securities and the Registration Rights Agreement. If a Holder converts more than one Security
at the same time, the amount of cash to be paid and the number of shares of Common Stock issuable
upon the conversion, if any, (and the amount of any cash in lieu of fractional shares pursuant to
Section 4.3) shall be based on the aggregate principal amount of all Securities so converted.

          (e) In the case of any Security which is converted in part only, upon such conversion the
Company shall execute and the Trustee shall authenticate and deliver to the Holder thereof, at the
expense of the Company, a new Security or Securities of authorized denominations in an aggregate
principal amount equal to, and in exchange for, the unconverted portion of the principal amount of
such Security. A Security may be converted in part, but only if the principal amount of such part
is an integral multiple of $1,000 and the principal amount of such Security to remain outstanding
after such conversion is equal to $1,000 or any integral multiple of $1,000 in excess thereof.

          SECTION 4.3. FRACTIONAL SHARES.

          The Company will not issue fractional shares of Common Stock upon conversion of Securities.
If more than one Security shall be surrendered for conversion at one time by the same Holder, the
number of full shares, if any, that 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. In lieu of any fractional shares, the Company will pay an
amount in cash for the current market value of the fractional shares. The current market value of
a fractional share shall be determined (calculated to the nearest 1/100th of a share) by
multiplying the Closing Price (determined as set forth in Section 4.6(d)) of the Common Stock on
the Conversion Date by such fractional share and rounding the product to the nearest whole cent.

          SECTION 4.4. TAXES ON CONVERSION.

          If a Holder converts a Security, the Company shall pay any transfer, stamp or similar taxes or
duties related to the issue or delivery of shares of Common Stock to the Holder upon such
conversion. However, the Holder shall pay any such tax with respect to cash received in lieu of
fractional shares. In addition, the Holder shall pay any such tax which is due because the Holder
requests the shares to be issued in a name other than the Holder’s name. The Conversion Agent may
refuse to deliver the certificate representing the Common Stock being issued in a name other than
the Holder’s name until the Conversion Agent receives a sum sufficient to pay any tax or duty which
will be due because the shares are to be issued in a name other than the Holder’s name. Nothing
herein shall preclude any tax withholding required by law or regulation.

34

 

          SECTION 4.5. COMPANY TO PROVIDE STOCK.

          (a) The Company shall from time to time as may be necessary reserve, out of its authorized but
unissued Common Stock, or hold as treasury stock, a sufficient number of shares of Common Stock to
permit the delivery of shares of Common Stock upon conversion of all outstanding Securities in
accordance with Section 4.14.

          (b) Any shares of Common Stock delivered upon conversion of the Securities shall be newly
issued shares or shares issued out of treasury stock, shall be duly authorized, validly issued,
fully paid and nonassessable and shall be free from preemptive or similar rights and free of any
lien or adverse claim.

          (c) The Company will endeavor promptly to comply with all federal and state securities laws
regulating the offer and delivery of shares of Common Stock upon conversion of Securities, if any,
and will list or cause to have quoted such shares of Common Stock on the New York Stock Exchange or
each national securities exchange or on the Nasdaq National Market or other over-the-counter market
or such other market on which the Common Stock is then listed or quoted; provided,
however, that if rules of such exchange or automated quotation system permit the Company to
defer the listing of such Common Stock until the first conversion of the Securities into Common
Stock in accordance with the provisions of this Indenture, the Company covenants to list such
Common Stock issuable upon conversion of the Securities in accordance with the requirements of such
exchange or automated quotation system at such time. Any Common Stock issued upon conversion of a
Security hereunder which at the time of conversion was a Restricted Security will also be treated
as a Restricted Security.

          SECTION 4.6. ADJUSTMENT OF CONVERSION RATE.

          (a) The Conversion Rate shall be adjusted from time to time by the Company as follows:

          (1) In case the Company shall pay a dividend on its Common Stock in shares of Common Stock
or make a distribution on its Common Stock in shares of Common Stock, the Conversion Rate in
effect immediately prior to the record date for the determination of shareholders entitled to
receive such dividend or other distribution shall be increased so that the same shall equal the
rate determined by multiplying the Conversion Rate in effect immediately prior to such record
date by a fraction of which the numerator of shall be the sum of the number of shares of Common
Stock outstanding at the close of business on such record date plus the total number of shares
of Common Stock constituting such dividend or other distribution and of which the denominator
shall be the number of shares of Common Stock
outstanding at the close of business on such record date. Such adjustment shall be made
successively whenever any such dividend or distribution is made and shall become effective
immediately after such record date. For purposes of this clause (1), the number of shares of
Common Stock at any time outstanding shall not include shares held in the treasury of the
Company. The Company will not pay any dividend or make any distribution on Common Shares held
in the treasury of the Company. If any dividend or distribution of the type described in this
clause is declared but not so paid or made, the Conversion Rate shall again be adjusted to the
Conversion Rate that would then be in effect if such dividend or distribution had not been
declared.

          (2) In case the Company shall subdivide its outstanding Common Stock into a greater number
of shares, or combine its outstanding Common Stock into a smaller number of shares, the
Conversion Rate in effect immediately prior to the day upon which such subdivision or
combination becomes effective shall be, in the case of a subdivision of Common Stock,
proportionately increased and, in the case of a

35

 

combination of Common Stock proportionately
reduced. Such adjustment shall be made successively whenever any such subdivision or
combination of the Common Stock occurs and shall become effective immediately after the date
upon which such subdivision or combination becomes effective.

          (3) In case the Company shall issue rights, options or warrants to all or substantially all
of the holders of its Common Stock entitling them (for a period of not more than 60 days after
such issuance) to subscribe for or purchase shares of Common Stock or securities convertible
into Common Stock (other than pursuant to a Rights Plan) at a price per share (or having a
conversion price per share) less than the Current Market Price per share of Common Stock (as
determined in accordance with clause (8) of this Subsection 4.6(a)) on the record date for the
determination of stockholders entitled to receive such rights, options or warrants, the
Conversion Rate in effect immediately prior thereto shall be adjusted so that the same shall
equal the rate determined by multiplying the Conversion Rate in effect immediately prior to such
record date by a fraction of which the numerator shall be the number of shares of Common Stock
outstanding at the close of business on such record date plus the number of additional shares of
Common Stock offered (or into which the convertible securities so offered are convertible) and
of which the denominator shall be the number of shares of Common Stock outstanding at the close
of business on such record date plus the number of shares which the aggregate offering price of
the total number of shares of Common Stock so offered for subscription or purchase (or the
aggregate conversion price of the convertible securities so offered for subscription or
purchase, which shall be determined by multiplying the number of shares of Common Stock issuable
upon conversion of such convertible securities by the conversion price per share of Common Stock
pursuant to the terms of such convertible securities) would purchase at the Current Market Price
per share of Common Stock on such record date. Such adjustment shall be made successively
whenever any such rights, options or warrants are issued, and shall become effective immediately
after such record date. For purposes of this clause (3), the number of shares of Common Stock
at any time outstanding shall not include shares held in the treasury of the Company. To the
extent that shares of Common Stock (or securities convertible into Common Stock) are not
delivered after the expiration of such rights, options or warrants, the Conversion Rate shall be
readjusted to the Conversion Rate that would then be in effect had the adjustments made upon the
issuance of such rights, options or warrants been made on the basis of delivery of only the
number of Common Shares actually delivered. If such rights, options or warrants are not so
issued, the Conversion Rate shall again be adjusted to be the Conversion Rate that would then be
in effect if the record date for the determination of stockholders entitled to receive such
rights, options or warrants had not been fixed. In determining whether any rights, options or
warrants entitle the shareholders to subscribe for or purchase shares of Common Stock at a price
less than the Current Market Price per share of Common Stock and in determining the aggregate
offering price of the total number of shares of Common Stock so offered, there
shall be taken into account any consideration received by the Company for such rights,
options or warrants and any amount payable on exercise or conversion thereof, the value of such
consideration, if other than cash, to be determined by the Board of Directors.

          (4) If the Company shall make a dividend or other distribution to all or substantially all
of the holders of its Common Stock of Capital Stock, or evidences of indebtedness or other
assets of the Company (excluding (x) any dividend or distribution of Common Stock for which an
adjustment was made pursuant to Section 4.6(a)(1), any subdivision or combination of Common
Stock for which an adjustment was made pursuant to Section 4.6(a)(2), any issuance of rights,
options or warrants for which an adjustment was made pursuant to Section 4.6(a)(3), (y) any
distribution or issuance of Rights pursuant to a Rights Plan and (z) any dividend or
distribution paid exclusively in cash for which an adjustment was made pursuant to Section
4.6(a)(6)) (the “Distributed Securities”), then in each such case the Conversion Rate in
effect immediately prior to the record date fixed for the determination of stockholders entitled to

36

 

receive such dividend or distribution shall be adjusted so that the same shall equal the rate
determined by multiplying the Conversion Rate in effect immediately prior to such record date by
a fraction of which the numerator shall be the Current Market Price per share of the Common
Stock on such record date and of which the denominator shall be the Current Market Price per
share on the record date less the fair market value (as determined by the Board of Directors,
whose determination shall be conclusive evidence of such fair market value and which shall be
evidenced by an Officers’ Certificate delivered to the Trustee) on such record date of the
portion of the Distributed Securities so distributed applicable to one share of Common Stock
(determined on the basis of the number of shares of Common Stock outstanding at the close of
business on such record date). Such adjustment shall be made successively whenever any such
distribution is made and shall become effective immediately after the record date for the
determination of stockholders entitled to receive such distribution. For purposes of this clause
(4), the number of shares of Common Stock at any time outstanding shall not include shares held
in the treasury of the Company.

          In the event the then fair market value (as so determined) of the portion of the
Distributed Securities so distributed applicable to one share of Common Stock is equal to or
greater than the Current Market Price per share of the Common Stock on such record date, in lieu
of the foregoing adjustment, adequate provision shall be made so that each Holder of a Security
shall have the right to receive upon conversion the amount of Distributed Securities so
distributed such Holder would have received with respect to shares of Common Stock, if any, such
Holder would have received had such Holder converted each Security on such record date. In the
event that such dividend or distribution is not so paid or made, the Conversion Rate shall again
be adjusted to be the Conversion Rate that would then be in effect if such dividend or
distribution had not been declared. If the Board of Directors determines the fair market value
of any distribution for purposes of this Subsection 4.6(a)(4) 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 Current Market Price of the Common Stock.

          Notwithstanding the foregoing, if the securities distributed by the Company to all holders
of its Common Stock consist of capital stock of, or similar equity interests in, a Subsidiary or
other business unit of the Company (the “Spinoff Securities”), the Conversion Rate shall
be adjusted, so that the same shall be equal to the rate determined by multiplying the
Conversion Rate in effect immediately prior to the record date fixed for the determination of
Stockholders entitled to receive such distribution by a fraction: of which the numerator shall
be the Current Market Price per share of the Common Stock on such record date and of which the
denominator shall be the Current Market Price per share on the record date less the fair market
value (as determined in good faith by the Board of Directors, whose determination shall be
conclusive evidence of such fair market value and which shall be evidenced by an
Officers’ Certificate delivered to the Trustee) on such record date of the portion of the
Spinoff Securities so distributed applicable to one share of Common Stock (determined on the
basis of the number of shares of Common Stock outstanding at the close of business on such
record date), provided, however, that the Company may in lieu of the foregoing
adjustment elect to make adequate provision so that each Holder of Securities shall have the
right to receive upon conversion thereof the amount of such Spinoff Securities of such
Subsidiary or business unit that such Holder of Securities would have
received with respect to shares of Common Stock, if any, such Holder would have received if such Securities had been
converted on the record date with respect to such distribution.

          (5) With respect to any Rights (the “Rights”) that may be issued or distributed
pursuant to any Company rights plan (a “Rights Plan”), upon conversion of the
Securities, to the extent that such Rights Plan is in effect upon such conversion and to the
extent the Company delivers shares of Common Stock upon conversion, the Holders of Securities
will receive, with respect to such shares of Common Stock

37

 

issued upon conversion, the Rights
described therein (whether or not the Rights have separated from the Common Stock at the time of
conversion), subject to the limitations set forth in and in accordance with any such Rights
Plan. Any distribution of rights or warrants pursuant to a Rights Plan complying with the
requirements set forth in the immediately preceding sentence of this paragraph shall not
constitute a distribution of rights or warrants pursuant to this Subsection 4.6(a). Other than
as specified in this clause (5) of this Section 4.6(a), there will not be any adjustment to the
Conversion Rate as the result of the issuance of any Rights, the distribution of separate
certificates representing such Rights, the exercise or redemption of such Rights in accordance
with any Rights Plan or the termination or invalidation of any Rights.

          (6) In case the Company shall, by dividend or otherwise, at any time distribute (a
“Triggering Distribution”) to all or substantially all holders of its Common Stock a
payment consisting exclusively of cash, the Conversion Rate shall be increased so that the same
shall equal the rate determined by multiplying such Conversion Rate in effect immediately prior
to the day on which such Triggering Distribution is declared (“Determination Date”) by a
fraction of which the numerator shall be such Current Market Price per share of the Common Stock
on the Determination Date and the denominator of which shall be the Current Market Price per
share of the Common Stock on the Determination Date less the sum of the aggregate amount of
cash, paid or payable applicable to one share of Common Stock (determined on the basis of the
number of shares of Common Stock outstanding at the close of business on the Determination
Date), such increase to become effective immediately prior to the opening of business on the day
following the date on which the Triggering Distribution is paid. If the amount of cash dividend
or distribution applicable to one share of Common Stock is equal to or greater than the Current
Market Price per share of the Common Stock on the Determination Date, in lieu of the foregoing
adjustment, adequate provision shall be made so that each Holder of a Security shall have the
right to receive upon conversion the amount of cash so distributed that such Holder would have
received with respect to shares of Common Stock, if any, such Holder would have received had
such Holder converted each Security on such Determination Date. In the event that such dividend
or distribution is not so paid or made, the Conversion Rate shall again be adjusted to be the
Conversion Rate that would then be in effect if such divided or distribution had not been
declared. For purposes of this clause (6), the number of shares of Common Stock at any time
outstanding shall not include shares held in the treasury of the Company.

          (7) In case any tender offer made by the Company or any of its Subsidiaries for Common
Stock shall expire, then immediately prior to the opening of business on the day after the last
date (the “Expiration Date”) tenders could have been made pursuant to such tender offer
(as it may be amended) (the last time at which such tenders could have been made on the
Expiration Date is hereinafter sometimes called the “Expiration Time”), the Conversion Rate shall be increased so
that the same shall equal the rate determined by multiplying the Conversion Rate in effect
immediately prior to the close of business on the Expiration Date by a fraction of which (i) the
numerator shall be the sum of (A) the fair market value of the aggregate consideration (the fair
market value as determined by the Board of Directors, whose determination shall be conclusive
evidence of such fair market value and which shall be evidenced by an Officers Certificate
delivered to the Trustee) payable to stockholders based on the acceptance (up to any maximum
specified in the terms of the tender offer) of all shares validly tendered and not withdrawn as
of the Expiration Time (the shares deemed so accepted, up to any such maximum, being referred to
as the “Purchased Shares”) and (B) the product of the number of shares of Common Stock
outstanding (less any Purchased Shares and excluding any shares held in the treasury of the
Company) at the Expiration Time and the average Closing Price per share of Common Stock for the
three Trading Days next succeeding the Expiration Date and (ii) the denominator of which shall
be the product of the number of shares of Common Stock outstanding (including Purchased Shares
but excluding any

38

 

shares held in the treasury of the Company) at the Expiration Time multiplied
by average the Closing Price per share of the Common Stock for the three Trading Days next
succeeding the Expiration Date, such increase to become effective immediately prior to the
opening of business on the day following the Expiration Date. In the event that the Company is
obligated to purchase shares pursuant to any such tender offer, but the Company is permanently
prevented by applicable law from effecting any or all such purchases or any or all such
purchases are rescinded, the Conversion Rate shall again be adjusted to be the Conversion Rate
which would have been in effect based upon the number of shares actually purchased. If the
application of this clause (7) of Subsection 4.6(a) to any tender offer would result in a
decrease in the Conversion Rate, no adjustment shall be made for such tender offer under this
clause (7).

          For purposes of this Subsection, the term “tender offer” shall mean and include
both tender offers and exchange offers, all references to “purchases” of shares in
tender offers (and all similar references) shall mean and include both the purchase of shares in
tender offers and the acquisition of shares pursuant to exchange offers, and all references to
“tendered shares” (and all similar references) shall mean and include shares tendered in
both tender offers and exchange offers.

          (8) For the purpose of any computation under this Subsection 4.6(a), the current market
price (the “Current Market Price”) per share of Common Stock on any date shall be deemed
to be the average of the daily Closing Prices for the 10 consecutive Trading Days before (A) the
Determination Date, with respect to distributions under this Subsection 4.6(a) or (B) the record
date with respect to distributions, issuances or other events requiring such computation under
this Section 4.6. The “Closing Price” for each day shall be the last reported sales
price or, in case no such reported sale takes place on such date, the average of the reported
closing bid and asked prices in either case on the New York Stock Exchange or, if the Common
Stock is not listed or admitted to trading on the New York Stock Exchange, on the principal
national securities exchange on which the Common Stock is listed or admitted to trading or, if
not so listed or admitted to trading, the last reported sales price of the Common Stock as
quoted on NASDAQ or, in case no reported sales takes place, the average of the closing bid and
asked prices as quoted on NASDAQ or any comparable system or, if the Common Stock is not quoted
on NASDAQ or any comparable system, the closing sales price or, in case no reported sale takes
place, the average of the closing bid and asked prices, as furnished by any two members of the
National Association of Securities Dealers, Inc. selected from time to time by the Company for
that purpose. If no such prices are available or if such definition results in a value
inconsistent with the purpose of this provision, the Current Market Price per share shall be the
fair value of a share of Common Stock as reasonably determined in good faith by the Board of
Directors (which determination shall be conclusive and shall be evidenced by an Officers’
Certificate delivered to the Trustee).

          (b) In any case in which this Section 4.6 shall require that an adjustment be made following a
record date, a Determination Date or Expiration Date, as the case may be, established for the
purposes specified in this Section 4.6, the Company may elect to defer (but only until five
Business Days following the filing by the Company with the Trustee of the certificate described in
Section 4.9) giving effect to any such adjustment with respect to any Security converted after such
record date, Determination Date or Expiration Date; and, in lieu of any cash, property or
securities the issuance of which is so deferred, the Company shall issue or cause its transfer
agents to issue due bills or other appropriate evidence prepared by the Company of the right to
receive such cash, property or securities. If any distribution in respect of which an adjustment
to the Conversion Rate is required to be made as of the record date, Determination Date or
Expiration Date therefor is not thereafter made or paid by the Company for any reason, the
Conversion Rate shall be readjusted to the Conversion Rate which would then be in effect if such
record date had not been fixed or such effective date, Determination Date or Expiration Date had
not occurred.

39

 

          (c) For purposes of this Section 4.6, “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 or converted into any combination of cash, securities or other
property, the date fixed for determination of stockholders entitled to receive such cash, security
or other property (whether or not such date is fixed by the Board of Directors or by statute,
contract or otherwise).

          SECTION 4.7. NO ADJUSTMENT.

          (a) No adjustment in the Conversion Rate shall be required if Holders may participate in the
transactions set forth in Section 4.6 above (to the same extent as if the Securities had been
converted immediately prior to such transactions) without converting the Securities held by such
Holders. In addition, in no event will the adjustments pursuant to Section 4.6(a) result in a
conversion rate per $1,000 principal amount of Securities in excess of 53.5331, other than on
account of proportional adjustments to the Conversion Rate in the manner set forth in clauses
(1)-(4) of Section 4.6(a).

          (b) All calculations under this Article 4 shall be made to the nearest cent or to the nearest
one-hundredth of a share, as the case may be.

          (c) No adjustment in the Conversion Rate shall be required for issuances of Common Stock
pursuant to a Company plan for reinvestment of dividends or interest or for a change in the par
value or a change to no par value of the Common Stock.

          SECTION 4.8. ADJUSTMENT FOR TAX PURPOSES.

          The Company shall be entitled to make such increases in the Conversion Rate, in addition to
those required by Section 4.6, as it in its discretion shall determine to be advisable in order
that any stock dividends, subdivisions of shares, distributions of rights to purchase stock or
securities, distributions of securities convertible into or exchangeable for stock or similar event
hereafter made by the Company to its stockholders shall not be taxable to, or to diminish any
income tax to, such stockholders.

          SECTION 4.9. NOTICE OF ADJUSTMENT.

          Whenever the Conversion Rate or conversion privilege is required to be adjusted pursuant to
this Indenture, the Company shall promptly deliver to Holders a notice of the adjustment in
accordance with Section 14.2 and file with the Trustee an Officers’ Certificate briefly stating the
facts requiring the adjustment and the manner of computing it. Unless and until the Trustee shall
receive an Officers’ Certificate setting forth an adjustment of the Conversion Rate, the Trustee
may assume without inquiry that the Conversion Rate has not been adjusted and that the last
Conversion Rate of which it has knowledge remains in effect.

          SECTION 4.10. NOTICE OF CERTAIN TRANSACTIONS.

          If otherwise than in connection with a Change in Control or a transaction that would result in
a Conversion Rate adjustment under Section 4.1(i) hereof or a transaction for which the Company has
delivered a Merger Notice in accordance with Section 4.1(c), in the event that:

          (a) the Company takes any action which would require an adjustment in the Conversion Rate;

40

 

          (b) the Company consolidates or merges with, or transfers all or substantially all of its
property and assets to, another corporation and stockholders of the Company must approve the
transaction; or

          (c) there is a dissolution or liquidation of the Company,

the Company shall mail to Holders and file with the Trustee a notice stating the proposed record
date or effective date, as the case may be. The Company shall mail such notice at least 10 days
before such proposed record date or effective date. Failure to mail such notice or any defect
therein shall not affect the validity of any transaction referred to in clause (a), (b) or (c) of
this Section 4.10.

          SECTION
4.11. EFFECT OF RECLASSIFICATION, CONSOLIDATION, MERGER OR SALE ON
CONVERSION

          PRIVILEGE.

          (a) Subject to Section 4.15, if any of the following shall occur, namely: (1) 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 transaction or event for which
an adjustment is provided in Section 4.6); (2) any statutory share exchange, consolidation or
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 (3) any sale or
conveyance of all or substantially all the property and assets of the Company, directly or
indirectly, to any person, in each case, as a result of which holders of the Company’s Common Stock
are entitled to receive stock, other securities, other property or assets (including cash or any
combination thereof) with respect to or in exchange for the Company’s Common Stock, then the
Company and any such successor, purchasing or
transferee corporation, as the case may be, shall, as a condition precedent to such
reclassification, change, combination, statutory share exchange, consolidation, merger, sale or
conveyance, execute and deliver to the Trustee a supplemental indenture to this Indenture providing
that the Holder of each Security then outstanding shall have the right to convert such Security
based on the kind and amount of shares of stock and other securities and property (including cash)
receivable upon such reclassification, change, combination, statutory share exchange,
consolidation, merger, sale or conveyance by a holder of the number of shares of Common Stock equal
to the Conversion Rate of such Security immediately prior to such reclassification, change,
combination, statutory share exchange, consolidation, merger, sale or conveyance. Such
supplemental indenture shall (i) specify the Conversion Rate immediately after such transaction,
(ii) provide for adjustments of the Conversion Rate which shall be as nearly equivalent as may be
practicable to the adjustments of the Conversion Rate provided for in this Article 4, (iii) set
forth appropriate modifications to the means of determining the Conversion Value and settlement
provisions specified in this Article 4 so as to be as nearly equivalent to such provisions as may
be practicable and (iv) make such other modifications as are determined to be necessary to protect
the interests of Holders of the Securities as the Board of Directors shall reasonably consider
necessary by reason of the foregoing. If, in the case of any such consolidation, merger,
combination, statutory share exchange, sale or conveyance, the stock or other securities and
property (including cash) receivable thereupon by a holder of Common Stock include shares of stock
or other securities and property of a person other than the successor, purchasing or transferee
corporation, as the case may be, in such consolidation, merger, combination, statutory share
exchange, sale or conveyance, then such supplemental indenture shall also be executed by such other
person 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

41

 

reason of the foregoing. The provisions of this Section 4.11 shall similarly apply to successive
reclassifications, changes, combinations, consolidations, mergers, sales or conveyances.

          (b) In the event the Company shall execute a supplemental indenture pursuant to this Section
4.11, the Company shall promptly file with the Trustee (1) an Officers’ Certificate briefly stating
the reasons therefor, the kind or amount of shares of stock or other securities or property
(including cash) receivable by holders of the Company’s Common Stock in any such reclassification,
change, combination, consolidation, merger, sale or conveyance, the adjustments to the Conversion
Rate and other provisions of this Article 4 made in such supplemental indenture and any other
adjustment to be made with respect thereto and that all conditions precedent have been complied
with and (2) an Opinion of Counsel that all conditions precedent thereto and hereunder have been
complied with, and shall promptly mail notice thereof to all Holders.

          SECTION 4.12. TRUSTEE’S DISCLAIMER.

          (a) The Trustee shall have no duty to determine when an adjustment under this Article 4 should
be made, how it should be made or what such adjustment should be, but may accept as conclusive
evidence of that fact or the correctness of any such adjustment, and shall be protected in relying
upon, an Officers’ Certificate including the Officers’ Certificate with respect thereto which the
Company is obligated to file with the Trustee pursuant to Section 4.9. The Trustee makes no
representation as to the validity or value of any securities or assets issued upon conversion of
Securities, and the Trustee shall not be responsible for the Company’s failure to comply with any
provisions of this Article 4.

          (b) The Trustee shall not be under any responsibility to determine the correctness of any
provisions contained in any supplemental indenture executed pursuant to Section 4.11, but may
accept as conclusive evidence of the correctness thereof, and shall be fully protected in relying upon,
the Officers’ Certificate with respect thereto which the Company is obligated to file with the
Trustee pursuant to Section 4.11.

          SECTION 4.13. VOLUNTARY INCREASE.

          In addition to increases in the Conversion Rate pursuant to Section 4.8, 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 and if the increase is irrevocable during the period if the Board of Directors
determines that such increase would be in the best interest of the Company and the Company provides
15 days prior notice of any increase in the Conversion Rate;
provided, however, that in no event
may the Company increase the Conversion Rate so that the adjusted Conversion Price would be less
than the par value of a share of Common Stock.

          SECTION 4.14. PAYMENT OF CASH IN LIEU OF COMMON STOCK.

          (a) In lieu of delivery of shares of Common Stock in an amount equal to the Conversion Rate
upon conversion of any Securities, Holders surrendering Securities for conversion shall receive for
each $1,000 principal amount of Securities surrendered: (A) cash in an amount equal to the lesser
of (1) $1,000 and (2) the Conversion Value; and (B) if the Conversion Value is greater than $1,000,
a number of shares of the Company’s Common Stock equal to the sum of the Daily Share Amounts for
each of the 30 consecutive Trading Days in the Conversion Reference Period (the “Remaining
Shares”), subject to the Company’s right to deliver cash in lieu of all or a portion of such
shares as set forth in Section 4.14(b). The Company will

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deliver such cash and any shares of Common Stock, together with any cash payable for fractional shares, to such Holder in accordance
with Section 4.2 and Section 4.3.

          (b) The Company may elect to pay cash to the Holders of Securities surrendered for conversion
in lieu of all or a portion of the Common Stock otherwise issuable pursuant to Section 4.14(a). In
such event, on any day prior to the first Trading Day of the applicable Conversion Reference
Period, the Company will specify a percentage of the Daily Share Amount that will be settled in
cash (the “Cash Percentage”) and the amount of cash that the Company will pay in respect of
each Trading Day in the applicable Conversion Reference Period will equal the product of: (1) the
Cash Percentage, (2) the Daily Share Amount for such Trading Day and (3) the Closing Price of our
Common Stock for such Trading Day (provided that after the consummation of a Change in
Control in which the consideration is comprised entirely of cash, the amount used in this clause
(3) will be the cash price per share received by holders of our Common Stock in such Change in
Control). The number of shares that the Company shall deliver in respect of each Trading Day in
the applicable Conversion Reference Period will be a percentage of the Daily Share Amount equal to
100% minus the Cash Percentage. Upon making a determination that a percentage of the Daily Share
Amount will be settled in cash, the Company shall provide notice to the Holders and the Trustee of
such determination in accordance with Section 14.2. If the Company does not specify a Cash
Percentage by the start of the applicable Conversion Reference Period, the Company shall settle
100% of the Daily Share Amount for each Trading Day in the applicable Conversion Reference Period
with shares of Common Stock; provided, however, that the Company shall pay cash in
lieu of fractional shares otherwise issuable upon conversion of Securities in accordance with
Section 4.3.

          (c) The Conversion Value, Daily Share Amounts, Closing Price, and the number of Remaining
Shares to be issued and amount of cash to be paid in respect of the Remaining Shares will be
determined by the Company at the end of the Conversion Reference Period. For the purposes of Sections
4.14(a) and (b), in the event that any of the Conversion Value, Daily Share Amounts, Closing Price,
or the number of Remaining Shares to be issued and amount of cash to be paid in respect of the
Remaining Shares is not calculable for all portions of the Conversion Reference Period or the
calculations do not produce results consistent with the purpose of this provision, the Company’s
Board of Directors shall in good faith determine the values and algorithms necessary to calculate
the Conversion Value, Daily Share Amounts, and Closing Price, as applicable.

          SECTION 4.15. CONVERSION AFTER A PUBLIC ACQUIRER CHANGE IN CONTROL.

          (a) In the event of a Public Acquirer Change In Control, the Company may, in lieu of
increasing the Conversion Rate pursuant to Section 4.1(i), elect to adjust the Conversion Rate and
the related conversion obligation such that from and after the Effective Date of such Public
Acquirer Change In Control, Holders of Securities will be entitled to convert their Securities, in
accordance with Section 4.2 hereof, based on an adjusted Conversion Rate determined by multiplying
the Conversion Rate in effect immediately before the Public Acquirer Change In Control by a
fraction:

          (1) the numerator of which will be (A) in the case of a share exchange, consolidation,
merger or binding share exchange, pursuant to which the Common Stock is converted into cash,
securities or other property, the average value of all cash and any other consideration (as
determined by the Board of Directors) paid or payable per share of Common Stock or (B) in
the case of any other Public Acquirer Change In Control, the average of the Closing Prices
of the Common Stock for the

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five consecutive Trading Days prior to but excluding the Effective Date of such Public Acquirer Change In Control, and

          (2) the denominator of which will be the average of the Closing Prices of the Public
Acquirer Common Stock for the five consecutive Trading Days commencing on the Trading Day
next succeeding the Effective Date of such Public Acquirer Change In Control.

          (b) If the Company so elects, Holders may convert their Securities at the adjusted Conversion
Rate described in the preceding paragraph, but will not be entitled to an increase in the
Conversion Rate pursuant to Section 4.1(i) hereof. In such event, in lieu of delivering such
shares of Public Acquirer Common Stock, a Holder will receive upon conversion of the Security, cash
in an amount equal to the lesser of $1,000 and the Conversion Value, and if the Conversion Value is
greater than $1,000, payment of the excess value in the form of cash, Public Acquirer Common Stock
or a combination thereof in accordance with the provisions described under Section 4.11 and Section
4.14. The Company will notify Holders of its election by giving notice in accordance with Section
14.2.

ARTICLE 5

[Intentionally Omitted]

ARTICLE 6

COVENANTS

          SECTION 6.1. PAYMENT OF SECURITIES.

          (a) The Company shall promptly make all payments in respect of the Securities on the dates and
in the manner provided in the Securities and this Indenture. An installment of principal or
interest shall be considered paid on the date it is due if the Paying Agent (other than the
Company) holds by 11:00 a.m., New York City time, on that date money, deposited by or on behalf of
the Company sufficient to pay the installment. Subject to Section 4.2 hereof, accrued and unpaid
interest on any Security that is payable, and is punctually paid or duly provided for, on any
Interest Payment Date shall be paid to the Person in whose name that Security is registered at the
close of business on the Regular Record Date for such Interest Payment Date at the office or agency
of the Company maintained for such purpose. The Company shall, to the fullest extent permitted by
law, pay interest in immediately available funds on overdue principal (including premium, if any)
and overdue installments of interest at the rate borne by the Securities.

          (b) Payment of the principal of (and premium, if any) and interest on the Securities shall be
made at the office or agency of the Company maintained for that purpose in the Borough of
Manhattan, The City of New York (which shall initially be the Trustee) or at the Corporate Trust
Office of the Trustee in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts; provided, however,
that at the option of the Company payment of interest may be made by check mailed to the address of
the Person entitled thereto as such address appears in the Register; provided
further that a Holder with an aggregate principal amount in excess of $2,000,000 will be
paid by wire transfer in immediately available funds at the election of such Holder if such Holder
has provided wire transfer

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instructions to the Company at least 10 Business Days prior to the
payment date. Notwithstanding the foregoing, with respect to any Securities registered in the name
of a Depositary or its nominee, all payments thereon shall be made by wire transfer of immediately
available funds to the account of the Depositary or its nominee.

          SECTION 6.2. SEC REPORTS.

          (a) The Company shall file all reports and other information and documents which it is
required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act, and within 15
days after it files them with the SEC, the Company shall file copies of all such reports,
information and other documents with the Trustee; provided that any such reports,
information and documents filed with the SEC pursuant to its Electronic Data Gathering, Analysis
and Retrieval system shall be deemed to be filed with the Trustee.

          (b) Delivery of such reports, information and documents to the Trustee is for informational
purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained therein, including the
Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to
rely exclusively on Officers’ Certificates).

          SECTION 6.3. COMPLIANCE CERTIFICATES.

          The Company shall deliver to the Trustee, within 90 days after the end of each fiscal year of
the Company (beginning with the fiscal year ending December 31, 2005), an Officers’ Certificate as
to the signer’s knowledge of the Company’s compliance with all conditions and covenants on its part
contained in this Indenture and stating whether or not the signer knows of any default or Event of
Default. If such signer knows of such a default or Event of Default, the Officers’ Certificate
shall describe the default or Event of Default and the efforts to remedy the same. For the
purposes of this Section 6.3, compliance shall be determined without regard to any grace period or
requirement of notice provided pursuant to the terms of this Indenture.

          SECTION 6.4. FURTHER INSTRUMENTS AND ACTS.

          Upon request of the Trustee, the Company will execute and deliver such further instruments and
do such further acts as may be reasonably necessary or proper to carry out more effectively the
purposes of this Indenture.

          SECTION 6.5. MAINTENANCE OF CORPORATE EXISTENCE.

          Subject to Article 7, the Company will do or cause to be done all things necessary to preserve
and keep in full force and effect its corporate existence.

          SECTION 6.6. RULE 144A INFORMATION REQUIREMENT.

          Within the period prior to the expiration of the holding period applicable to sales thereof
under Rule 144(k), 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, upon the request of any Holder or
beneficial holder of the Securities make available to such Holder or beneficial holder of
Securities in connection with any sale thereof and any prospective purchaser of Securities
designated by such Holder or beneficial holder, the information

45

 

required pursuant to Rule 144A(d)(4) under the Securities Act and it will take such further action as any Holder or
beneficial holder of such Securities may reasonably request, all to the extent required from time
to time to enable such Holder or beneficial holder to sell its Securities 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, the
Company will deliver to such Holder a written statement as to whether it has complied with such
requirements.

          SECTION 6.7. 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, premium, if any, or interest on the Securities as
contemplated herein, wherever enacted, now or at any time hereafter in force, or which may affect
the covenants or the performance of this Indenture, and the Company (to the extent 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 6.8. PAYMENT OF LIQUIDATED DAMAGES.

          If Liquidated Damages are payable by the Company pursuant to the Registration Rights
Agreement, the Company shall deliver to the Trustee a certificate to that effect stating (i) the
amount of such Liquidated Damages that are payable, (ii) the reason why such Liquidated Damages are
payable and (iii) the date on which such Liquidated Damages are payable. Unless and until a Trust
Officer of the Trustee receives such a certificate, the Trustee may assume without inquiry that no
such Liquidated Damages is payable. If the Company has paid Liquidated Damages directly to the
Persons entitled to such Liquidated Damages, the Company shall deliver to the Trustee a certificate
setting forth the particulars of such payment.

ARTICLE 7

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

          SECTION 7.1. COMPANY MAY CONSOLIDATE, ETC., ONLY ON CERTAIN TERMS.

          (a) The Company may not, without the consent of Holders, consolidate with, merge into or
transfer all or substantially all of the Company’s assets unless:

          (1) either (A) the Company shall be the resulting or surviving corporation or (B) the
Person (if other than the Company) formed by such consolidation or into which the Company is
merged or the Person which acquires by conveyance, transfer or lease, all or substantially all
of the properties and assets of the Company shall (i) be a corporation, limited liability
company, partnership, trust or other business entity organized and existing under the laws of
the United States of America or any State thereof and (ii) expressly assume the due and punctual
payment of the principal of and any premium and interest on all the Securities and the
performance or observance of every covenant and provision of this Indenture and the Securities
required on the part of the Company to be performed or observed and the conversion
rights shall be provided for in accordance with Article 4, by supplemental indenture
satisfactory in form to the Trustee, executed and delivered to the Trustee, by the Person (if
other than the Company) formed

46

 

by such consolidation or into which the Company shall have been
merged or by the Person which shall have acquired the Company’s assets;

          (2) at the time of giving effect to such transaction, no Event of Default, and no event
which, after notice or lapse of time or both, would become an Event of Default, shall have
happened and be continuing; and

          (3) if the Company will not be the resulting or surviving corporation, the Company shall
have, at or prior to the effective date of such consolidation, merger or transfer, delivered to
the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that such
consolidation, merger or transfer and, if a supplemental indenture is required in connection
with such transaction, such supplemental indenture complies with this Article and that all
conditions precedent herein provided for relating to such transaction have been complied with.

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

          SECTION 7.2. SUCCESSOR SUBSTITUTED.

          Upon any consolidation of the Company with, or merger of the Company into, any other Person or
any conveyance, transfer or lease of all or substantially all of the properties and assets of the
Company in accordance with Section 7.1, the successor Person formed by such consolidation or into
which the Company is merged or to which such conveyance, transfer or lease is made shall succeed
to, and be substituted for, and may exercise every right and power of, the Company under this
Indenture with the same effect as if such successor Person had been named as the Company herein,
and thereafter, except in the case of a lease, and except for obligations the predecessor Person
may have under a supplemental indenture, the predecessor Person shall be relieved of all
obligations and covenants under this Indenture and Securities.

ARTICLE 8

DEFAULT AND REMEDIES

          SECTION 8.1. EVENTS OF DEFAULT.

          (a) An “Event of Default” shall occur if:

          (1) the Company fails to pay when due the principal of, or premium, if any, on any of the
Securities at the Final Maturity Date, or upon a redemption or purchase pursuant to Article 3,
whether or not such payment is prohibited by the provisions in Article 13 herein;

          (2) the Company fails to pay an installment of interest on any of the Securities that
continues for 30 days after the date when due, whether or not such payment is prohibited by the
provisions in Article 13 herein;

47

 

          (3) the Company fails to satisfy in full its conversion obligations following conversion of
any Securities pursuant to Article 4 within the time periods contemplated by Section 4.2(a),
whether or not such payment is prohibited by the provision in Article 13 herein;

          (4) the Company fails to perform or observe any other term, covenant or agreement contained
in the Securities or this Indenture for a period of 45 days after the Notice of Default
specified below is given;

          (5) the Company fails to timely provide a Company Change in Control Notice when required by
Section 3.7(d);

          (6) the Company fails to make any payment at the end of the applicable grace period, if
any, after the maturity of any indebtedness for borrowed money with an aggregate principal
amount then outstanding in excess of $15,000,000, whether such indebtedness now exists or shall
hereafter be created, or there is an acceleration of indebtedness for borrowed money in an
amount in excess of $15,000,000 because of a default with respect to such indebtedness, and such
indebtedness, in either case, is not discharged, or such acceleration is not cured, waived,
rescinded or annulled, within a period of 30 days after there shall have been given a Notice of
Default, as defined below, requiring the Company to cause such indebtedness to be discharged or
cause such default to be cured or waived or such acceleration to be rescinded or annulled;

          (7) the Company or any Significant Subsidiary of the Company pursuant to or within the
meaning of any Bankruptcy Law:

          (A) commences a voluntary case or proceeding;

          (B) consents to the entry of an order for relief against it in an involuntary case
or proceeding;

          (C) consents to the appointment of a Custodian of it or for all or substantially
all of its property;

          (D) makes a general assignment for the benefit of its creditors;

          (E) files a petition in bankruptcy or answer or consent seeking reorganization or
relief; or

          (F) consents to the filing of such a petition or the appointment of or taking
possession by a Custodian; or

          (8) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law
that:

          (A) is for relief against the Company or any Significant Subsidiary of the Company
in an involuntary case or proceeding or adjudicates the Company or any Significant
Subsidiary of the Company insolvent or bankrupt;

          (B) appoints a Custodian of the Company or any Significant Subsidiary of the
Company or for all or substantially all of the property of the Company or any
Significant Subsidiary of the Company; or

48

 

          (C) orders the winding up or liquidation of the Company or any Significant
Subsidiary of the Company;

and in each case the order or decree remains unstayed and in effect for 60 consecutive days.

The term “Bankruptcy Law” means Title 11 of the United States Code (or any successor
thereto) or any similar federal or state or foreign law for the relief of debtors. The term
“Custodian” means any receiver, trustee, assignee, liquidator, sequestrator or similar
official under any Bankruptcy Law.

          (b) A default under clauses (4) or (6) of Subsection 8.1(a) is not an Event of Default until
after there shall have 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 Securities then outstanding written notice specifying such default (the “Notice of
Default”), and the Company does not cure the default within the time specified in clauses (4)
or (6) of Subsection 8.1(a) after receipt of such notice. The Notice of Default must specify the
default, demand that it be remedied and state that the notice is a Notice of Default. When any
default under this Section 8.1 is cured, it ceases.

          (c) The Company will deliver to the Trustee, within 5 Business Days of becoming aware of the
occurrence of an Event of Default, written notice thereof. In addition, the Company shall deliver
to the Trustee, within 10 days after it becomes aware of the occurrence thereof, written notice of
any event which with the lapse of time would become an Event of Default under clause (4) or (6) of
Subsection 8.1(a).

          The Trustee shall not be charged with knowledge of any Event of Default unless written notice
thereof shall have been given to a Trust Officer at the Corporate Trust Office of the Trustee by
the Company, a Paying Agent, any Holder or any agent of any Holder or unless it acquires actual
knowledge of such Event of Default in the course of performing other duties pursuant to this
Indenture.

          SECTION 8.2. ACCELERATION.

          If an Event of Default (other than an Event of Default specified in clause (7) or (8) of
Subsection 8.1(a) with respect to the Company) occurs and is continuing with respect to the
Company, the Trustee may, by notice to the Company, or the Holders of at least 25% in aggregate
principal amount of the Securities then outstanding may, by notice to the Company and the Trustee,
declare the principal amount, and all accrued and unpaid interest, if any, to the date of
acceleration on the Securities then outstanding (if not then due and payable) to be due and payable
upon any such declaration, and the same shall become and be immediately due and payable. If an
Event of Default specified in clause (7) or (8) of Subsection 8.1(a) occurs and is continuing with
respect to the Company, the principal amount, and all accrued and unpaid interest, if any, of the
Securities then outstanding shall ipso facto become and be immediately due and payable without any
declaration or other act on the part of the Trustee or any Holder. The Holders of a majority in
aggregate principal amount of the Securities then outstanding by notice to the Trustee may rescind
an acceleration and its consequences if (a) all existing Events of Default, other than the
nonpayment of the principal, premium, if any and interest on the Securities which has become due
solely by such declaration of acceleration, have been
cured or waived; (b) to the extent the payment of such interest is lawful, interest
(calculated at the rate per annum borne by the Securities) on overdue installments of interest and
overdue principal, which has become due otherwise than by such declaration of acceleration, has
been paid; (c) the rescission would not conflict with any judgment or decree of a court of
competent jurisdiction; and (d) all payments due to the Trustee and any predecessor Trustee under
Section 9.7 have been made. No such rescission shall affect any subsequent default or impair any
right consequent thereto.

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          SECTION 8.3. OTHER REMEDIES.

          (a) If an Event of Default occurs and is continuing, the Trustee may, but shall not be
obligated to, pursue any available remedy by proceeding at law or in equity to collect the payment
of the principal of or interest on the Securities or to enforce the performance of any provision of
the Securities or this Indenture.

          (b) The Trustee may maintain a proceeding even if it does not possess any of the Securities or
does not produce any of them 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 to the extent permitted by law.

          SECTION 8.4. WAIVER OF DEFAULTS AND EVENTS OF DEFAULT.

          Subject to Sections 8.7 and 11.2, the Holders of a majority in aggregate principal amount of
the Securities then outstanding by notice to the Trustee may waive an existing default or Event of
Default and its consequences, except a default or Event of Default in the payment of the principal
of, premium, if any, or interest, if any, on any Security (other than any such nonpayment which has
become due solely by a declaration of acceleration), a failure by the Company to satisfy its
payment obligations upon conversion of any Security or any default or Event of Default in respect
of any provision of this Indenture or the Securities which, under Section 11.2, cannot be modified
or amended without the consent of the Holder of each Security affected. When a default or Event of
Default is waived, it is cured and ceases.

          SECTION 8.5. CONTROL BY MAJORITY.

          The Holders of a majority in aggregate principal amount of the Securities then outstanding may
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 it. However, the Trustee may refuse to
follow any direction that conflicts with law or this Indenture, that the Trustee determines may be
unduly prejudicial to the rights of another Holder or the Trustee, or that may involve the Trustee
in personal liability unless the Trustee is offered indemnity
satisfactory to it; provided,
however, that the Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction.

          SECTION 8.6. LIMITATIONS ON SUITS.

          (a) A Holder may not pursue any remedy with respect to this Indenture or the Securities
(except actions for payment of overdue principal, premium, if any, interest, if any, or failure of
the Company to satisfy its payment obligations upon conversion of any Security) unless:

          (1) the Holder gives to the Trustee written notice of a continuing Event of Default;

          (2) the Holders of at least 25% in aggregate principal amount of the then outstanding
Securities make a written request to the Trustee to pursue the remedy;

          (3) such Holder or Holders offer to the Trustee reasonable indemnity to the Trustee against
any loss, liability or expense;

50

 

          (4) the Trustee does not comply with the request within 60 days after receipt of the
request and the offer of indemnity; and

          (5) no direction inconsistent with such written request has been given to the Trustee
during such 60-day period by the Holders of a majority in aggregate principal amount of the
Securities then outstanding.

          (b) A Securityholder may not use this Indenture to prejudice the rights of another
Securityholder or to obtain a preference or priority over such other Securityholder.

          SECTION 8.7. RIGHTS OF HOLDERS TO RECEIVE PAYMENT AND TO CONVERT.

          Notwithstanding any other provision of this Indenture, the right of any Holder of a Security
to receive payment of the principal of and interest, if any, on or after the respective due dates
expressed in the Security and this Indenture, to convert such Security in accordance with Article 4
and to bring suit for the enforcement of any such payment on or after such respective dates or the
right to convert, is absolute and unconditional and shall not be impaired or affected without the
consent of the Holder.

          SECTION 8.8. COLLECTION SUIT BY TRUSTEE.

          If an Event of Default in the payment of principal or interest, if any, specified in clause
(1) or (2) of Subsection 8.1(a) occurs and is continuing, the Trustee may recover judgment in its
own name and as trustee of an express trust against the Company or another obligor on the
Securities for the whole amount of principal and accrued interest, if any, remaining unpaid,
together with, to the extent that payment of such interest is lawful interest on overdue principal
and overdue installments of interest in each case at the rate per annum borne by the Securities and
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.

          SECTION 8.9. TRUSTEE MAY FILE PROOFS OF CLAIM.

          The Trustee may file such proofs of claim and other papers or documents as may be necessary or
advisable in order to have the claims of the Trustee (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and the
Holders allowed in any judicial proceedings relative to the Company (or any other obligor on the
Securities), its creditors or its property and shall be entitled and empowered to collect and
receive any money or other property payable or deliverable on any such claims and to distribute the
same, and any Custodian 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 to 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 9.7, and to the extent that such payment of the
reasonable compensation, expenses, disbursements and advances in any such proceedings shall be
denied for any reason, payment of the same shall be secured by a lien on, and shall be paid out of,
any and all distributions, dividends, money, securities and other property which the Holders may be
entitled to receive in such proceedings, whether in liquidation or under any plan of reorganization
or arrangement or otherwise. Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to, or, on behalf of any Holder, to authorize, accept or adopt any plan of
reorganization, arrangement, adjustment or composition

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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 8.10. PRIORITIES.

          (a) If the Trustee collects any money pursuant to this Article 8, it shall pay out the money
in the following order:

          (1) First, to the Trustee for amounts due under Section 9.7;

          (2) Second, to Holders for amounts due and unpaid on the Securities for principal and
interest, ratably, without preference or priority of any kind, according to the amounts due
and payable on the Securities for principal and interest, respectively; and

          (3) Third, the balance, if any, to the Company.

          (b) The Trustee may fix a record date and payment date for any payment to Holders pursuant to
this Section 8.10.

          SECTION 8.11. 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, a court in its discretion may
require the filing by any party litigant in the suit of an undertaking to pay the costs of the
suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’ 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. This Section 8.11 does not apply to a suit made by the Trustee, a suit by a
Holder pursuant to Section 8.7, or a suit by Holders of more than 25% in aggregate principal amount
of the Securities then outstanding.

ARTICLE 9

TRUSTEE

          SECTION 9.1. DUTIES OF TRUSTEE.

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

          (b) Except during the continuance of an Event of Default:

          (1) the Trustee need perform only those duties as are specifically set forth in this
Indenture and no others; and

          (2) in the absence of bad faith on its part, the Trustee may conclusively rely, as to the
truth of the statements and the correctness of the opinions expressed therein, upon certificates
or opinions furnished to the Trustee and conforming to the requirements of this Indenture. The
Trustee, however, shall examine

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any certificates and opinions which by any provision hereof are
specifically required to be delivered to the Trustee to determine whether or not they conform to
the requirements of this Indenture.

          (c) The Trustee may not be relieved from liability for its own negligent action, its own
negligent failure to act, or its own willful misconduct, except that:

          (1) this paragraph does not limit the effect of Subsection (b) of this Section 9.1;

          (2) the Trustee shall not be liable for any error of judgment made in good faith by a Trust
Officer, unless it is proved that the Trustee was negligent in ascertaining the pertinent facts;
and

          (3) the Trustee shall not be liable with respect to any action it takes or omits to take in
good faith in accordance with a direction received by it pursuant to Section 8.5.

          (d) No provision of this Indenture shall require the Trustee to expend or risk its own funds
or otherwise incur any financial liability in the performance of any of its duties hereunder or in
the exercise of any of its rights or powers unless the Trustee shall have received adequate
indemnity in its opinion against potential costs and liabilities incurred by it relating thereto.

Every provision of this Indenture that in any way relates to the Trustee is subject to Subsections
(a), (b), (c) and (d) of this Section 9.1.

          (e) The Trustee shall not be liable for interest on any money received by it except as the
Trustee may agree in writing with the Company. Money held in trust by the Trustee need not be
segregated from other funds except to the extent required by law.

          SECTION 9.2. RIGHTS OF TRUSTEE.

          (a) Subject to Section 9.1:

          (1) The Trustee may rely conclusively on any document believed by it to be genuine and to
have been signed or presented by the proper person. The Trustee need not investigate any fact
or matter stated in the document.

          (2) Before the Trustee acts or refrains from acting, it may require an Officers’
Certificate or an Opinion of Counsel, which shall conform to Section 14.4(b). The Trustee shall
not be liable for any action it takes or omits to take in good faith in reliance on such
Officers’ Certificate or Opinion.

          (3) The Trustee may act through its agents and shall not be responsible for the misconduct
or negligence of any agent appointed with due care.

          (4) The Trustee shall not be liable for any action it takes or omits to take in good faith
which it believes to be authorized or within its rights or powers.

          (5) The Trustee may consult with counsel of its selection, and the advice or opinion of
such counsel as to matters of law shall be full and complete authorization and protection in
respect of any such action taken, omitted or suffered by it hereunder in good faith and in
accordance with the advice or opinion of such counsel.

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

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

          (8) The Trustee shall not be deemed to have notice of any Default or Event of Default
unless a Trust 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, and such notice references the Securities and this Indenture.

          (9) 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, including, without limitation
as Paying Agent, Registrar and Conversion Agent, and to each agent, custodian and other Person
employed to act hereunder.

          SECTION 9.3. INDIVIDUAL RIGHTS OF TRUSTEE.

          The Trustee in its individual or any other capacity may become the owner or pledgee of
Securities and may otherwise deal with the Company or an Affiliate of the Company with the same
rights it would have if it were not Trustee. Any Agent may do the same with like rights. However,
the Trustee is subject to Sections 9.10 and 9.11.

          SECTION 9.4. TRUSTEE’S DISCLAIMER.

          The Trustee makes no representation as to the validity or adequacy of this Indenture or the
Securities. It shall not be accountable for the Company’s use of the proceeds from the Securities,
and it shall not be responsible for any statement in the Securities other than its certificate of
authentication.

          SECTION 9.5. NOTICE OF DEFAULT OR EVENTS OF DEFAULT.

          If a Default or an Event of Default occurs and is continuing and if it is known to the
Trustee, the Trustee shall mail to each Securityholder notice of all uncured defaults or Events of
Default known to it within 90 days after it occurs. However, the Trustee may withhold the notice
if and so long as a committee of its Trust Officers in good faith determines that withholding
notice is in the interests of Securityholders, except in the case of a default or an Event of
Default in payment of the principal of, or premium, if any, or interest on any Security when due or
in the payment of any redemption or purchase obligation, or the Company’s failure to satisfy its
conversion obligations.

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          SECTION 9.6. REPORTS BY TRUSTEE TO HOLDERS.

          (a) If a report is required by TIA Section 313, within 60 days after each May 31, beginning
with the May 31 following the date of this Indenture, the Trustee shall mail to each Securityholder
a brief report dated as of such May 31 that complies with TIA Section 313(a). The Trustee also
shall comply with TIA Section 313(b)(2) and (c).

          (b) A copy of each report at the time of its mailing to Securityholders shall be mailed to the
Company and, to the extent required by the TIA, filed with the SEC, and each stock exchange, if
any, on which the Securities are listed. The Company shall notify the Trustee whenever the
Securities become listed on any stock exchange or listed or admitted to trading on any quotation
system and any changes in the stock
exchanges or quotation systems on which the Securities are listed or admitted to trading and
of any delisting thereof.

          SECTION 9.7. COMPENSATION AND INDEMNITY.

          (a) The Company shall pay to the Trustee from time to time such compensation (as agreed to
from time to time by the Company and the Trustee in writing) for its services (which compensation
shall not be limited by any provision of law in regard to the compensation of a trustee of an
express trust). The Company shall reimburse the Trustee upon request for all reasonable
disbursements, expenses and advances incurred or made by it. Such expenses may include the
reasonable compensation, disbursements and expenses of the Trustee’s agents and counsel.

          (b) The Company shall indemnify the Trustee or any predecessor Trustee (which for purposes of
this Section 9.7 shall include its officers, directors, employees and agents) for, and hold it
harmless against, any and all loss, liability or expense including taxes (other than taxes based
upon, measured by or determined by the income of the Trustee), (including reasonable legal fees and
expenses) incurred by it in connection with the acceptance or administration of its duties under
this Indenture or any action or failure to act as authorized or within the discretion or rights or
powers conferred upon the Trustee hereunder including the reasonable costs and expenses of the
Trustee and its counsel in defending itself against any claim or liability in connection with the
exercise or performance of any of its powers or duties hereunder. The Trustee shall notify the
Company promptly of any claim asserted against the Trustee for which it may seek indemnity. The
Company need not pay for any settlement effected without its prior written consent, which shall not
be unreasonably withheld.

          (c) The Company need not reimburse the Trustee for any expense or indemnify it against any
loss or liability incurred by it resulting from its gross negligence or bad faith.

          (d) To secure the Company’s payment obligations in this Section 9.7, the Trustee shall have a
senior claim to which the Securities are hereby made subordinate on all money or property held or
collected by the Trustee. The obligations of the Company under this Section 9.7 shall survive the
satisfaction and discharge of this Indenture or the resignation or removal of the Trustee.

          (e) When the Trustee incurs expenses or renders services after an Event of Default specified
in clause (7) or (8) of Subsection 8.1(a) occurs, the expenses and the compensation for the
services are intended to constitute expenses of administration under any Bankruptcy Law. The
provisions of this Section shall survive the termination of this Indenture.

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          SECTION 9.8. REPLACEMENT OF TRUSTEE.

          (a) The Trustee may resign by so notifying the Company. The Holders of a majority in
aggregate principal amount of the Securities then outstanding may remove the Trustee by so
notifying the Trustee and may, with the Company’s written consent, appoint a successor Trustee.
The Company may remove the Trustee if:

          (1) the Trustee fails to comply with Section 9.10;

          (2) the Trustee is adjudged a bankrupt or an insolvent;

          (3) a receiver or other public officer takes charge of the Trustee or its property; or

          (4) the Trustee becomes incapable of acting.

          (b) If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for
any reason, the Company shall promptly appoint a successor Trustee. The resignation or removal of
a Trustee shall not be effective until a successor Trustee shall have delivered the written
acceptance of its appointment as described below.

          (c) If a successor Trustee does not take office within 45 days after the retiring Trustee
resigns or is removed, the retiring Trustee, the Company or the Holders of 25% in principal amount
of the Securities then outstanding may petition any court of competent jurisdiction for the
appointment of a successor Trustee at the expense of the Company.

          (d) If the Trustee fails to comply with Section 9.10, any Holder may petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

          (e) A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company. Immediately after that, the retiring Trustee shall transfer all
property held by it as Trustee to the successor Trustee and be released from its obligations
(exclusive of any liabilities that the retiring Trustee may have incurred while acting as Trustee)
hereunder, the resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have all the rights, powers and duties of the Trustee under this Indenture.
A successor Trustee shall mail notice of its succession to each Holder.

          (f) A retiring Trustee shall not be liable for the acts or omissions of any successor Trustee
after its succession.

          (g) Notwithstanding replacement of the Trustee pursuant to this Section 9.8, the Company’s
obligations under Section 9.7 shall continue for the benefit of the retiring Trustee.

          SECTION 9.9. SUCCESSOR TRUSTEE BY MERGER, ETC.

          If the Trustee consolidates with, merges or converts into, or transfers all or substantially
all of its corporate trust assets (including the administration of this Indenture) to, another
corporation, the resulting, surviving or transferee corporation, without any further act, shall be
the successor Trustee, provided such transferee corporation shall qualify and be eligible
under Section 9.10. Such successor Trustee shall promptly mail notice of its succession to the
Company and each Holder.

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          SECTION 9.10. ELIGIBILITY; DISQUALIFICATION.

          The Trustee shall always satisfy the requirements of paragraphs (1), (2) and (5) of TIA
Section 310(a). The Trustee (or its parent holding company) shall have a combined capital and
surplus of at least $50,000,000. If at any time the Trustee shall cease to satisfy any such
requirements, it shall resign immediately in the manner and with the effect specified in this
Article 9. The Trustee shall be subject to the provisions of TIA Section 310(b). Nothing herein
shall prevent the Trustee from filing with the SEC the application referred to in the penultimate
paragraph of TIA Section 310(b).

          SECTION 9.11. PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY.

          The Trustee shall comply with TIA Section 311(a), excluding any creditor relationship listed
in TIA Section 311(b). A Trustee who has resigned or been removed shall be subject to TIA Section
311(a) to the extent indicated therein.

ARTICLE 10

SATISFACTION AND DISCHARGE OF INDENTURE

          SECTION 10.1. SATISFACTION AND DISCHARGE OF INDENTURE.

          (a) This Indenture shall cease to be of further effect (except as to any surviving rights
of conversion, registration of transfer or exchange of Securities herein expressly provided for
and except as further provided below), and the Trustee, on demand of and at the expense of the
Company, shall execute proper instruments acknowledging satisfaction and discharge of this
Indenture, when

          (1) either

          (A) all Securities theretofore authenticated and delivered (other than (i) Securities
which have been destroyed, lost or stolen and which have been replaced or paid as provided
in Section 2.7 and (ii) Securities for whose payment money has theretofore been deposited in
trust and thereafter repaid to the Company as provided in Section 10.3) have been delivered
to the Trustee for cancellation; or

          (B) all such Securities not theretofore delivered to the Trustee for cancellation,

          (i) have become due and payable,

          (ii) will become due and payable at the Final Maturity Date within one year, or

          (iii) are to be called for redemption within one year under arrangements
reasonably satisfactory to the Trustee for the giving of notice of redemption by the
Trustee in the name, and at the expense, of the Company

          (2) and the Company has deposited with the Trustee or a Paying Agent (other than the
Company or any of its Affiliates) as trust funds in trust for the purpose of and in an amount
sufficient to pay and discharge the entire indebtedness on such Securities not theretofore delivered to the
Trustee for cancellation, for principal and interest to the date of such deposit (in the case of
Securities which have

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become due and payable) or to the Final Maturity Date or Redemption Date,
as the case may be. In the event that the Company exercises its right to redeem the Securities
as provided in Article 3, the Company shall have the right to withdraw its funds previously
deposited with the Trustee or Paying Agent pursuant to the immediately preceding sentence;

          (3) the Company has paid or caused to be paid all other sums payable hereunder by the
Company; and

          (4) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent herein relating to the satisfaction and
discharge of this Indenture have been complied with.

          (b) Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the
Company with respect to the conversion privilege of the Securities pursuant to Article 4, the
obligations of the Company to the Trustee under Section 9.7 and, if money shall have been deposited
with the Trustee pursuant to clause (2) of Subsection 10.1(a), the provisions of Sections 2.3, 2.4,
2.5, 2.6, 2.7 and 2.12, Articles 3 and 4, the last paragraph of Section 6.2 and this Article 10,
shall survive until the Securities have been paid in full.

          SECTION 10.2. APPLICATION OF TRUST MONEY.

          Subject to the provisions of Section 10.3, the Trustee or a Paying Agent shall hold in trust,
for the benefit of the Holders, all money deposited with it pursuant to Section 10.1 and shall
apply the deposited money in accordance with this Indenture and the Securities to the payment of
the principal of and interest on the Securities.

          SECTION 10.3. REPAYMENT TO COMPANY.

          (a) The Trustee and each Paying Agent shall promptly pay to the Company upon request any
excess money (1) deposited with them pursuant to Section 10.1 and (2) held by them at any time.

          (b) The Trustee and each Paying Agent shall, subject to applicable abandoned property laws,
pay to the Company upon request any money held by them for the payment of principal or interest or
upon conversion, redemption or purchase that remains unclaimed for two years after a right to such
money has matured; provided, however, that the Trustee or such Paying Agent, before being required
to make any such payment, may at the expense of the Company cause to be mailed to each Holder
entitled to such money notice that such money remains unclaimed and that after a date specified
therein, which shall be at least 30 days from the date of such mailing, any unclaimed balance of
such money then remaining will be repaid to the Company. After payment to the Company, Holders
entitled to money must look to the Company for payment as general creditors unless an applicable
abandoned property law designates another person.

          SECTION 10.4. REINSTATEMENT.

          (a) If the Trustee or any Paying Agent is unable to apply any money in accordance with Section
10.2 by reason of any legal proceeding or by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such application, then the
Company’s obligations under this Indenture and the Securities shall be revived and reinstated as
though no deposit had occurred pursuant to Section 10.1 until such time as the Trustee or such
Paying Agent is permitted to apply all such money in accordance with
Section 10.2; provided,
however, that if the Company has made any payment of the principal of or interest on any Securities
because of the reinstatement of its obligations, the Company

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shall be subrogated to the rights of the Holders of such Securities to receive any such payment from the money held by the Trustee or
such Paying Agent.

          (b) If pursuant to the last sentence of Section 10.1(a)(2), the Company withdraws its
previously deposited funds as a result of its exercise of its redemption right, the Company’s
obligations under this Indenture and the Securities shall be revived and reinstated as though no
deposit has occurred pursuant to Section 10.1.

ARTICLE 11

AMENDMENTS, SUPPLEMENTS AND WAIVERS

          SECTION 11.1. WITHOUT CONSENT OF HOLDERS.

          (a) The Company and the Trustee may amend or supplement this Indenture or the Securities
without notice to or consent of any Securityholder for the purpose of:

          (1) adding to the Company’s covenants for the benefit of the Holders;

          (2) surrendering any right or power conferred upon the Company;

          (3) providing for conversion rights of Holders if any reclassification or change of Common
Stock or any consolidation, merger or sale of all or substantially all of the Company’s assets
occurs in accordance with Article 4 or Article 7;

          (4) increasing the Conversion Rate, provided that the increase will not adversely
affect the interests of Holders in any material respect;

          (5) complying with the requirements of the SEC in order to effect or maintain the
qualification of this Indenture under the TIA;

          (6) making any changes or modifications to this Indenture necessary in connection with the
registration of the Securities under the Securities Act as contemplated by the Registration
Rights Agreement, provided that this action does not adversely affect the interests of
the Holders in any material respect;

          (7) curing any ambiguity, omission, inconsistency or correcting or supplementing any
defective provision contained in this Indenture; provided that such modification or
amendment does not, in the good faith opinion of the Board of Directors and the Trustee, adversely affect the
interests of the Holders in any material respect;

          (8) adding or modifying any other provisions which the Company and the Trustee may deem
necessary or desirable and which will not adversely affect the interests of the Holders in any
material respect;

          (9) complying with the provisions of this Indenture in the event of a merger, consolidation
or transfer of assets (including the provisions of Section 4.11 and Article 7); or

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          (10) providing for uncertificated Securities in addition to the certificated Securities so
long as such uncertificated Securities are in registered form for purposes of the Internal
Revenue Code of 1986, as amended.

          SECTION 11.2. WITH CONSENT OF HOLDERS.

          (a) The Company and the Trustee may amend or supplement this Indenture or the Securities with
the written consent of the Holders of at least a majority in aggregate principal amount of the
Securities then outstanding or by the adoption of a resolution at a meeting of Holders at which a
quorum is present by at least a majority in aggregate principal amount of the Securities
represented at the meeting. For purposes hereof, a Holder or Holders of at least a majority in
aggregate principal amount of Securities then outstanding shall constitute a quorum. The Holders
of at least a majority in aggregate principal amount of the Securities then outstanding may waive
compliance in a particular instance by the Company with any provision of this Indenture or the
Securities without notice to any Holder. However, notwithstanding the foregoing but subject to
Section 11.4, without the written consent of each Holder affected, an amendment, supplement or
waiver, including a waiver pursuant to Section 8.4, may not:

          (1) change the maturity of the principal of or any installment of interest on, any
Security;

          (2) reduce the principal amount of, premium, if any, or the amount payable upon conversion
pursuant to Article 4, or redemption or purchase pursuant to Article 3, with respect to any
Security;

          (3) reduce the interest rate or interest, including any Liquidated Damages, with respect to
any Security;

          (4) change the place or the currency of payment of principal of, premium, if any, or
interest on any Security;

          (5) impair the right to institute suit for the enforcement of any payment on or with
respect to, or conversion of, any Security;

          (6) modify the Company’s obligation to purchase Securities at the option of Holders or the
Company’s right to redeem Securities, in a manner adverse to the Holders;

          (7) except as otherwise permitted or contemplated by provisions of this Indenture
concerning corporate reorganizations, adversely affect the purchase option of Holders upon a
Change in Control or the conversion rights of Holders;

          (8) modify the subordination provisions of the Securities in a manner adverse to the
Holders in any material respect; or

          (9) reduce the percentage in aggregate principal amount of Securities outstanding necessary
or the quorum requirements necessary to modify or amend this Indenture or to waive any past
default.

          (b) After an amendment, supplement or waiver under this Section 11.2 becomes effective, the
Company shall promptly mail to the Holders affected thereby a notice briefly describing the
amendment, supplement or waiver. Any failure of the Company to mail such notice, or any defect
therein, shall not, however, in any way impair or affect the validity of any such amendment,
supplement or waiver.

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          SECTION 11.3. COMPLIANCE WITH TRUST INDENTURE ACT.

          Every amendment to or supplement of this Indenture or the Securities shall comply with the TIA
as in effect at the date of such amendment or supplement.

          SECTION 11.4. REVOCATION AND EFFECT OF CONSENTS.

          (a) Until an amendment, supplement or waiver becomes effective, a consent to it by a Holder is
a continuing consent by the Holder and every subsequent Holder of a Security or portion of a
Security that evidences the same debt as the consenting Holder’s Security, even if notation of the
consent is not made on any Security. However, any such Holder or subsequent Holder may revoke the
consent as to its Security or portion of a Security if the Trustee receives the notice of
revocation before the date the amendment, supplement or waiver becomes effective.

          (b) After an amendment, supplement or waiver becomes effective, it shall bind every
Securityholder, unless it makes a change described in any of clauses (1) through (9) of Subsection
11.2(a). In that case the amendment, supplement or waiver shall bind each Holder of a Security who
has consented to it and every subsequent Holder of a Security or portion of a Security that
evidences the same debt as the consenting Holder’s Security.

          SECTION 11.5. NOTATION ON OR EXCHANGE OF SECURITIES.

          If an amendment, supplement or waiver changes the terms of a Security, the Trustee may require
the Holder of the Security to deliver it to the Trustee. The Trustee may place an appropriate
notation on the Security about the changed terms and return it to the Holder. Alternatively, if
the Company or the Trustee so determines, the Company in exchange for the Security shall issue and
the Trustee shall authenticate a new Security that reflects the changed terms.

          SECTION 11.6. TRUSTEE TO SIGN AMENDMENTS, ETC.

          The Trustee shall sign any amendment or supplemental indenture authorized pursuant to this
Article 11 if the amendment or supplemental indenture does not adversely affect the rights, duties,
liabilities or immunities of the Trustee. If it does, the Trustee may, in its sole discretion, but
need not sign it. In signing or refusing to sign such amendment or supplemental indenture, the
Trustee shall be entitled to receive and, subject to Section 9.1, shall be fully protected in
relying upon, an Opinion of Counsel stating that such amendment or supplemental indenture is
authorized or permitted by this Indenture. The Company may not sign an amendment or supplement
indenture until the Board of Directors approves it.

          SECTION 11.7. EFFECT OF SUPPLEMENTAL INDENTURES.

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

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ARTICLE 12

[INTENTIONALLY OMITTED]

ARTICLE 13

SUBORDINATION

          SECTION 13.1. AGREEMENT TO SUBORDINATE.

          The Company agrees, and each Holder by accepting a Security agrees, that payments of
principal of, interest on (including Liquidated Damages, if any) and on account of redemption,
purchase, conversion or other acquisition of the Securities, and other obligations of any kind
evidenced by the Securities and this Indenture are subordinated in right of payment, to the extent
and in the manner provided in this Article 13, to the prior payment in full in cash or cash
equivalents (or otherwise to the extent holders of senior indebtedness accept satisfaction of
amounts due by settlement in other than cash or cash equivalents) of all senior indebtedness
whether outstanding on the date hereof or hereafter incurred.

          SECTION 13.2. LIQUIDATION; DISSOLUTION; BANKRUPTCY.

          In the event of any insolvency or bankruptcy case or proceeding, or any receivership,
liquidation, reorganization or other similar case or proceeding in connection therewith, relating
to the Company or to its assets, or any liquidation, dissolution or other winding-up of the
Company, whether voluntary or involuntary, or any assignment for the benefit of creditors or other
marshaling of assets or liabilities of the Company
(except in connection with the consolidation or merger of the Company or its liquidation or
dissolution following the conveyance, transfer or lease of its properties and assets substantially
upon the terms and conditions described in Article 7), the holders of senior indebtedness shall be
entitled to receive payment in full in cash or cash equivalents (or otherwise to the extent such
holders of senior indebtedness accept satisfaction of amounts due by settlement in other than cash
or cash equivalents) of all senior indebtedness, or provision shall be made for such payment,
before the Holders will be entitled to receive any payment or distribution of any kind or character
(other than payment or distribution in the form of Permitted Junior Securities, whether on account
of principal of or liquidated damages, if any, interest on, or conversion of, the Securities); and
any payment or distribution of assets of the Company of any kind or character, whether in cash,
property or securities (other than payments or distribution in the form of Permitted Junior
Securities), by set-off or otherwise, to which the Holders or the Trustee would be entitled but for
the provisions of this Article 13 shall be paid by the liquidating trustee or agent or other person
making such payment or distribution directly to the holders of senior indebtedness or their
representatives ratably according to the aggregate amounts remaining unpaid on account of the
senior indebtedness to the extent necessary to make payment in full in cash or cash equivalents (or
otherwise to the extent such holders of senior indebtedness accept satisfaction of amounts due by
settlement in other than cash or cash equivalents) of all senior indebtedness remaining unpaid, or
to have such payment duly provided for, after giving effect to any concurrent payment or
distribution to the holders of such senior indebtedness.

62

 

          SECTION 13.3. DEFAULT ON DESIGNATED SENIOR INDEBTEDNESS.

          (a) No payment or distribution of any assets of the Company of any kind or character,
whether in cash, property or securities (other than payments in the form of Permitted Junior
Securities), may be made by or on behalf of the Company on account of principal of or interest on
the Securities or on account of the purchase, redemption, conversion or other acquisition of
Securities upon the occurrence of any Payment Default until such Payment Default shall have been
cured or waived in writing or shall have ceased to exist or the senior indebtedness giving rise to
such Payment Default shall have been discharged or paid in full in cash or cash equivalents (or
otherwise to the extent the holders of senior indebtedness accept satisfaction of amounts due by
settlement in other than cash or cash equivalents).

          (b) No payment or distribution of any assets of the Company of any kind or character, whether
in cash, property or securities (other than payments in the form of Permitted Junior Securities),
may be made by or on behalf of the Company on account of principal of or interest on the Securities
or on account of the purchase, redemption, conversion or other acquisition of Securities during a
Payment Blockage Period arising as a result of Non-Payment Default.

A “Payment Blockage Period” will commence upon the date of receipt by the Trustee of
written notice from the representative of the holders of the Designated Senior Indebtedness in
respect of which the Non-Payment Default exists and shall end on the earliest of:

	 	•  	179 days thereafter (provided that any Designated Senior Indebtedness as to
which notice was given shall not theretofore have been accelerated);
	 
	 	•  	the date on which such Non-Payment Default is cured, waived or ceases to exist;
	 
	 	•  	the date on which such Designated Senior Indebtedness is discharged or paid in full; or
	 
	 	•  	the date on which such Payment Blockage Period shall have been terminated by written
notice to the Trustee or the Company from the representative initiating such Payment
Blockage Period;

after which the Company will resume making any and all required payments in respect of the
Securities, including any missed payments and Liquated Damages, if any. No more than one Payment
Blockage Period may be commenced during any period of 365 consecutive days. No Non-Payment Default
that existed or was continuing on the date of the commencement of any Payment Blockage Period shall
be, or can be made, the basis for the commencement of a subsequent Payment Blockage Period.

          SECTION 13.4. ACCELERATION OF SECURITIES.

          If payment of the Securities is accelerated because of an Event of Default, the Company
shall promptly notify holders of senior indebtedness of the acceleration.

63

 

          SECTION 13.5. WHEN DISTRIBUTION MUST BE PAID OVER.

          (a) In the event that, notwithstanding the provisions of Sections 13.2 and 13.3, any
payment or distribution, whether in cash, property, securities or other consideration, shall be
received by the Trustee or any Holder, which is prohibited by such provisions, then and in such
event such payment shall be held for the benefit of, and shall be paid over and delivered by such
Trustee or Holder to, the representative of holders of senior indebtedness, as their interest may
appear, for application to senior indebtedness to the extent necessary to pay or to provide for the
payment of all such senior indebtedness in full in cash or cash equivalents (or otherwise to the
extent such holders of senior indebtedness accept satisfaction of amounts due by settlement in
other than cash or cash equivalents).

          (b) With respect to the holders of senior indebtedness, the Trustee undertakes to perform only
such obligations on the part of the Trustee as are specifically set forth in this Article 13, and
no implied covenants or obligations with respect to the holders of senior indebtedness shall be
read into this Indenture against the Trustee. The Trustee shall not be deemed to owe any fiduciary
duty to the holders of senior indebtedness, and shall not be liable to any such holders if the
Trustee shall pay over or distribute to or on behalf of Holders or the Company or any other Person
money or assets to which any holders of senior indebtedness shall be entitled by virtue of this
Article 13, except if such payment is made as a result of the willful misconduct or gross
negligence of the Trustee.

          SECTION 13.6. NOTICE BY THE COMPANY.

          The Company shall promptly notify the Trustee and the Paying Agent of any facts known to
the Company that would cause a payment of any obligations with respect to the Securities to violate
this Article 13, but failure to give such notice shall not affect the subordination of the Securities to
the senior indebtedness as provided in this Article 13.

          SECTION 13.7. SUBROGATION.

          After all senior indebtedness is paid in full and until the Securities are paid in full,
Holders shall be subrogated (equally and ratably with all other indebtedness that is equal in right
of payment to the Securities) to the rights of holders of senior indebtedness to receive
distributions applicable to senior indebtedness to the extent that distributions otherwise payable
to the Holders have been applied to the payment of senior indebtedness. A distribution made under
this Article 13 to holders of senior indebtedness that otherwise would have been made to Holders is
not, as between the Company and Holders, a payment by the Company of the Securities.

          SECTION 13.8. RELATIVE RIGHTS.

          This Article 13 defines the relative rights of Holders and holders of senior
indebtedness. Nothing in this Indenture shall: (a) impair, as between the Company and Holders,
the obligation of the Company, which is absolute and unconditional, to pay principal of and
interest on the Securities in accordance with their terms; (b) affect the relative rights of
Holders and creditors of the Company other than their rights in relation to holders of senior
indebtedness; or (c) prevent the Trustee or any Holder from exercising its available remedies

64

 

upon an Event of Default, subject to the rights of holders and owners of senior indebtedness to receive
distributions and payments otherwise payable to Holders. If the Company fails because of this
Article 13 to pay principal of or interest on a Security on the Final Maturity Date or an Interest
Payment Date, the failure is still a Default or Event of Default.

          SECTION 13.9. SUBORDINATION MAY NOT BE IMPAIRED BY THE COMPANY.

          (a) No right of any holder of senior indebtedness to enforce the subordination of the
indebtedness evidenced by the Securities shall be impaired by any act or failure to act by the
Company or any Holder or by the failure of the Company or any Holder to comply with this Indenture.

          (b) Without in any way limiting the generality of this Section 13.9, the holders of senior
indebtedness may, at any time and from time to time, without the consent of or notice to the
Trustee or the Holders, without incurring responsibility to the Trustee or the Holders and without
impairing or releasing the subordination provided in this Article 13 or the obligations hereunder
of the Holders to the holders of senior indebtedness, do any one or more of the following: (1)
change the manner, place or terms of payment or extend the time of payment of, or renew or alter,
senior indebtedness, or any instrument evidencing the same or any agreement under which senior
indebtedness is outstanding or secured; (2) sell, exchange, release, foreclose against or otherwise
deal with any property pledged, mortgaged or otherwise securing senior indebtedness; (3) release
any Person liable in any manner for the collection of senior indebtedness; and (4) exercise or
refrain from exercising any rights against the Company, and Subsidiary thereof or any other Person.

          SECTION 13.10. DISTRIBUTION OR NOTICE TO REPRESENTATIVE.

          (a) Whenever a distribution is to be made or a notice given to holders of any senior
indebtedness, the distribution may be made and the notice given to their trustee or representative.

          (b) Upon any payment or distribution of assets of the Company referred to in this Article 13,
the Trustee and the Holders shall be entitled to rely upon any order or decree made by any court of
competent jurisdiction or upon any certificate of such representative(s) or of the liquidating
trustee or agent or other Person making any distribution to the Trustee or to the Holders for the
purpose of ascertaining the Persons entitled to participate in such distribution, all holders of
the senior indebtedness and other indebtedness of the Company, the amount thereof or payable
thereon, the amount or amounts paid or distributed thereon and all other facts pertinent thereto or
to this Article 13.

          SECTION 13.11. RIGHTS OF TRUSTEE AND PAYING AGENT.

          (a) Notwithstanding the provisions of this Article 13 or any other provision of this
Indenture, the Trustee shall not be charged with knowledge of the existence of any facts that would
prohibit the making of any payment or distribution by the Trustee, and the Trustee and the Paying
Agent may continue to make payments on the Securities, unless a Responsible Officer of the Trustee
shall have received at its Corporate Trust Office at least three Business Days prior to the date of
such payment written notice of facts that would cause the payment of any obligations with respect
to the Securities to violate this Article 13. Only the

65

 

Company or representative of the holders of senior indebtedness may give the notice. Nothing in this Article 13 shall impair the claims of, or
payments to, the Trustee under or pursuant to Section 9.7.

          (b) The Trustee in its individual or any other capacity may hold senior indebtedness with the
same rights it would have if it were not Trustee.

ARTICLE 14

MISCELLANEOUS

          SECTION 14.1. TRUST INDENTURE ACT CONTROLS.

          If any provision of this Indenture limits, qualifies or conflicts with the duties imposed by
any of Sections 310 to 317, inclusive, of the TIA through operation of Section 318(c) thereof, such
imposed duties shall control.

          SECTION 14.2. NOTICES.

          Any demand, authorization notice, request, consent or communication shall be given in writing
and delivered in person or mailed by first-class mail, postage prepaid, addressed as follows or
transmitted by facsimile transmission (confirmed by delivery in person or mail by first-class mail,
postage prepaid, or by guaranteed overnight courier) to the following facsimile numbers:

If to the Company, to:

Sybase, Inc.

One Sybase Drive

Dublin, California 94568

Attention: General Counsel

Facsimile No.: (925) 236-6824

with a copy to:

Wilson Sonsini Goodrich & Rosati, Professional Corporation

650 Page Mill Road

Palo Alto, California 94304

Attention: Robert Claassen

Facsimile No.: (650) 493-6811

66

 

if to the Trustee, to:

U.S. Bank National Association

633 West Fifth Street, 24th Floor

LM-CA-T24T

Los Angeles, California 90071

Attn: Corporate Trust Services (Sybase, Inc.  ̄ 1.75% Convertible Subordinated Notes Due 2025)

Facsimile No.: (213) 615-6197

          Such notices or communications shall be effective when received.

          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 Securityholder shall be mailed by first-class mail or
delivered by an overnight delivery service to it at its address shown on the register kept by the
Primary Registrar.

          Failure to mail a notice or communication to a Securityholder or any defect in it shall not
affect its sufficiency with respect to other Securityholders. If a notice or communication to a
Securityholder is mailed in the manner provided above, it is duly given, whether or not the
addressee receives it.

          SECTION 14.3. COMMUNICATIONS BY HOLDERS WITH OTHER HOLDERS.

          Securityholders may communicate pursuant to TIA Section 312(b) with other Securityholders with
respect to their rights under this Indenture or the Securities. The Company, the Trustee, the
Registrar and any other person shall have the protection of TIA Section 312(c).

          SECTION 14.4. CERTIFICATE AND OPINION AS TO CONDITIONS PRECEDENT.

          (a) Upon any request or application by the Company to the Trustee to take any action under
this Indenture, the Company shall furnish to the Trustee at the request of the Trustee:

          (1) an Officers’ Certificate stating that, in the opinion of the signers, all conditions
precedent (including any covenants, compliance with which constitutes a condition precedent), if
any, provided for in this Indenture relating to the proposed action have been complied with; and

          (2) an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions
precedent (including any covenants, compliance with which constitutes a condition precedent)
have been complied with.

          (b) Each Officers’ Certificate and Opinion of Counsel with respect to compliance with a
condition or covenant provided for in this Indenture shall include:

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

67

 

          (2) 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;

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

          (4) a statement as to whether or not, in the opinion of such person, such condition or
covenant has been complied with;

provided, however, that with respect to matters of fact an Opinion of Counsel may
rely on an Officers’ Certificate or certificates of public officials.

          SECTION 14.5. RECORD DATE FOR VOTE OR CONSENT OF SECURITYHOLDERS.

          The Company (or, in the event deposits have been made pursuant to Section 10.1, the Trustee)
may set a record date for purposes of determining the identity of Holders entitled to vote or
consent to any action by vote or consent authorized or permitted under this Indenture, which record
date shall not be more than thirty (30) days prior to the date of the commencement of solicitation
of such action. Notwithstanding the provisions of Section 11.4, if a record date is fixed, those
persons who were Holders of Securities at the close of business on such record date (or their duly
designated proxies), and only those persons, shall be entitled to
take such action by vote or consent or to revoke any vote or consent previously given, whether
or not such persons continue to be Holders after such record date.

          SECTION 14.6. RULES BY TRUSTEE, PAYING AGENT, REGISTRAR AND CONVERSION AGENT.

          The Trustee may make reasonable rules (not inconsistent with the terms of this Indenture) for
action by or at a meeting of Holders. Any Registrar, Paying Agent or Conversion Agent may make
reasonable rules for its functions.

          SECTION 14.7. LEGAL HOLIDAYS.

          A “Legal Holiday” is a Saturday or Sunday or a day on which state or federally
chartered banking institutions in New York, New York are authorized or obligated to close. If a
payment date is a Legal Holiday, payment shall be made on the next succeeding day that is not a
Legal Holiday, and no interest shall accrue for the intervening period. If a Regular Record Date
is a Legal Holiday, the record date shall not be affected.

          SECTION 14.8. GOVERNING LAW.

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

68

 

          SECTION 14.9. NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS.

          This Indenture may not be used to interpret another indenture, loan or debt agreement of the
Company or a Subsidiary of the Company. Any such indenture, loan or debt agreement may not be used
to interpret this Indenture.

          SECTION 14.10. NO RECOURSE AGAINST OTHERS.

          All liability described in paragraph 19 of the Securities of any director, officer, employee
or stockholder, as such, of the Company is waived and released.

          SECTION 14.11. SUCCESSORS.

          All agreements of the Company in this Indenture and the Securities shall bind its successor.
All agreements of the Trustee in this Indenture shall bind its successor.

          SECTION 14.12. MULTIPLE COUNTERPARTS.

          The parties may sign multiple counterparts of this Indenture. Each signed counterpart shall
be deemed an original, but all of them together represent the same agreement.

          SECTION 14.13. SEPARABILITY.

          In case any provisions 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 14.14. TABLE OF CONTENTS, HEADINGS, ETC.

          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 to be considered a part
hereof, and shall in no way modify or restrict any of the terms or provisions hereof.

[SIGNATURE PAGE FOLLOWS]

 

 

69

 

          IN WITNESS WHEREOF, the parties hereto have hereunto set their hands as of the date and year
first above written.

	 	 	 	 	 
	 	 	Sybase, Inc.
	 
	 	 	 	 
	 
	 	 	 	 
	

	 	By: 	 	/s/ PIETER VAN DER VORST
	

	 	 	 	 
	

	 	Name: 	 	Pieter Van der Vorst
	

	 	Title: 	 	Chief Financial Officer and

Senior Vice President
	 
	 	 	 	 
	 
	 	 	 	 
	

	 	By:	 	/s/ DANIEL R. CARL
	

	 	 	 	 
	

	 	Name:	 	Daniel R. Carl
	

	 	Title:	 	Vice President, General Counsel and

Secretary
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	U.S. Bank National Association, as Trustee
	 
	 	 	 	 
	 
	 	 	 	 
	

	 	By:	 	/s/ PAULA OSWALD
	

	 	 	 	 
	

	 	Name:
	 	Paula Oswald
	

	 	Title:
	 	Vice President

 

 

[Signature page to the Indenture]

 

 

EXHIBIT A

[FORM OF FACE OF SECURITY]

          UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY 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 THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. THIS
SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY IS EXCHANGEABLE FOR
SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE
LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND, UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR
IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE
BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE
DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A
SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.1

          THIS SECURITY AND ANY SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION OF THIS SECURITY HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY
STATE SECURITIES LAWS. NEITHER THIS SECURITY, ANY SHARES OF COMMON STOCK ISSUABLE UPON CONVERSION
OF THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN OR THEREIN MAY BE REOFFERED, SOLD,
ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH
REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION. EACH
PURCHASER OF THIS SECURITY IS HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE RELYING ON
THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A
THEREUNDER.2

          THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, AGREES TO OFFER, SELL OR OTHERWISE
TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE “RESALE RESTRICTION TERMINATION DATE”) THAT IS TWO
YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH SYBASE, INC. OR
ANY

	1	 	These paragraphs should be included only if the Security is a Global Security.
	 
	2	 	These paragraphs to be included only if the Security is a Restricted Security.

A-1

 

AFFILIATE OF SYBASE, INC. WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY)
ONLY (A) TO SYBASE, INC. OR ANY PARENT OR SUBSIDIARY THEREOF, (B) FOR SO LONG AS THE SECURITIES ARE
ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED
INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN
ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHICH NOTICE IS GIVEN THAT THE
TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (C) PURSUANT TO A REGISTRATION STATEMENT THAT HAS
BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, OR (D) PURSUANT TO ANOTHER AVAILABLE EXEMPTION
FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO SYBASE, INC.’S AND THE
TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE (D) TO REQUIRE THE
DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF
THEM, AND IN EACH OF THE FOREGOING CASES, A CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THE
OTHER SIDE OF THIS SECURITY IS COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE TRUSTEE. THIS
LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION
DATE.2

          THE HOLDER OF THIS SECURITY IS ENTITLED TO THE BENEFITS OF A REGISTRATION RIGHTS AGREEMENT (AS
SUCH TERM IS DEFINED IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF) AND, BY ITS ACCEPTANCE
HEREOF, AGREES TO BE BOUND BY AND TO COMPLY WITH THE PROVISIONS OF SUCH REGISTRATION RIGHTS
AGREEMENT.2

A-2

 

SYBASE, INC.

1.75% CONVERTIBLE SUBORDINATED NOTES DUE 2025

			
	No.                     
	 	CUSIP: [871130 AA 8]*

          Sybase, Inc., a Delaware corporation (the “Company”, which term shall include any successor
corporation under the Indenture referred to on the reverse hereof), promises to pay to___
___, or registered assigns, the principal sum of ___
Dollars ($___) on February 22, 2025 [or such greater or lesser amount as is indicated on the
Schedule of Exchanges of Securities on the other side of this Security].3

Interest Payment Dates: February 22 and August 22.

Regular Record Dates:    February 1 and August 1.

          This Security is convertible as specified on the other side of this Security. Additional
provisions of this Security are set forth on the other side of this Security.

SIGNATURE PAGE FOLLOWS

	*	 	Insert if the Security is a Global Security
	 
	3	 	This phrase should be included only if the Security is a Global Security.

A-3

 

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

	 	 	 	 	 
	 	 	Sybase, Inc.
	 
	 	 	 	 
	 
	 	 	 	 
	

	 	By:
	 	 
	

	 	 	 	 
	

	 	Name:	 	 
	

	 	Title:	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	

	 	By:
	 	 
	

	 	 	 	 
	

	 	Name:	 	 
	

	 	Title:	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	Dated:
	 	 	 	 
	 
	 	 	 	 
	Trustee’s Certificate of Authentication: This is one of the

Securities referred to in the within-mentioned Indenture.
	 	 	 	 
	 
	 	 	 	 
	U.S. Bank National Association,

as Trustee
	 	 	 	 
	 
	 	 	 	 
	 By:
	 	 	 	 
	 
	 	 	 	 
	Authorized Signatory
	 	 	 	 

A-4

 

[FORM OF REVERSE SIDE OF SECURITY]

SYBASE, INC.

1.75% Convertible Subordinated Notes Due 2025

	1.  	INTEREST

          Sybase, Inc., a Delaware corporation (the “Company”, which term shall include any successor
corporation under the Indenture hereinafter referred to), promises to pay interest on the principal
amount of this Security at the rate of 1.75% per annum. The Company shall pay interest
semiannually on February 22 and August 22 of each year, commencing August 22, 2005. Interest on
the Securities shall accrue from the most recent date to which interest has been paid or, if no
interest has been paid, from February 22, 2005; provided,
however, that if there is not an existing
default in the payment of interest and if this Security is authenticated between a Regular Record
Date referred to on the face hereof and the next succeeding Interest Payment Date, interest shall
accrue from such Interest Payment Date. Interest will be computed on the basis of a 360-day year
comprised of twelve 30-day months. Any reference herein to interest accrued or payable as of any
date shall include any Liquidated Damages accrued or payable on such date as provided in the
Registration Rights Agreement.

          No sinking fund is provided for the Securities.

	2.  	METHOD OF PAYMENT

          The Company shall pay interest on this Security (except defaulted interest) to the person who
is the Holder of this Security at the close of business on February 1 or August 1, as the case may
be, (each, a Regular Record Date) next preceding the related Interest Payment Date. The Holder
must surrender this Security to a Paying Agent to collect payment of principal. The Company will
pay principal of (and premium, if any) and interest in such coin or currency of the United States
of America that at the time of payment is legal tender for payment of public and private debts;
provided, however, that a Holder with an aggregate principal amount in excess of
$2,000,000 will be paid by wire transfer in immediately available funds at the election of such
Holder if such Holder has provided wire transfer instructions to the Company at least 10 Business
Days prior to the payment date. The Company may mail an interest check to the Holder’s registered
address. Notwithstanding the foregoing, so long as this Security is registered in the name of a
Depositary or its nominee, all payments hereon shall be made by wire transfer of immediately
available funds to the account of the Depositary or its nominee.

	3.  	PAYING AGENT, REGISTRAR AND CONVERSION AGENT

          Initially, U.S. Bank National Association (the “Trustee”, which term shall include any
successor trustee under the Indenture hereinafter referred to) will act as Paying Agent, Registrar
and Conversion Agent. The Company may change any Paying Agent, Registrar or Conversion Agent
without notice to the Holder. The Company or any of its Affiliates may, subject to certain
limitations set forth in the Indenture, act as Paying Agent, Conversion Agent or Registrar.

	4.  	INDENTURE, LIMITATIONS

          This Security is one of a duly authorized issue of Securities of the Company designated as its
1.75% Convertible Subordinated Notes Due 2025 (the “Securities”), issued under an Indenture dated as of

A-5

 

February 22, 2005 (together with any supplemental indentures thereto, the “Indenture”),
between the Company and the Trustee. The terms of this Security include those stated in the
Indenture and those required by or made part of the Indenture by reference to the Trust Indenture
Act of 1939, as amended, as in effect on the date of the Indenture. This Security is subject to
all such terms, and the Holder of this Security is referred to the Indenture and said Act for a
statement of them.

          The Securities are subordinated unsecured obligations of the Company limited to $460,000,000
aggregate principal amount. The Indenture does not limit the ability of the Company to incur other
debt, secured or unsecured.

	5.  	OPTIONAL REDEMPTION

          Prior to March 1, 2010, this Security shall not be redeemable. The Company may, at its
option, redeem the Securities on or after March 1, 2010 in whole, or from time to time in part (in
integral multiples of $1,000), at a Redemption Price in cash equal to 100% of the principal amount
of the Securities to be redeemed, plus accrued and unpaid interest to, but excluding, the
Redemption Date; provided that if the Redemption Date falls after a Regular Record Date and
on or before an Interest Payment Date, then the interest will be payable to the Holders in whose
names the Securities are registered at the close of business on such Regular Record Date and such
interest shall not be payable as part of the Redemption Price. Securities or portions of
Securities called for redemption shall be convertible by the Holder until the close of business on
the Business Day prior to the Redemption Date.

	6.  	NOTICE OF REDEMPTION

          Notice of redemption, as set forth in Section 3.3 of the Indenture, will be given in
accordance with Section 14.2 of the Indenture at least 30 days but not more than 60 days before the
Redemption Date to each Holder of Securities to be redeemed at its registered address. Securities
in denominations larger than $1,000 may be redeemed in part, but only in whole multiples of $1,000.
On and after the Redemption Date, subject to the deposit with the Paying Agent of funds sufficient
to pay the Redemption Price, interest shall cease to accrue on Securities or portions thereof
called for redemption.

	7.  	PURCHASE OF SECURITIES AT OPTION OF HOLDER UPON A CHANGE IN CONTROL

          At the option of the Holder and subject to the terms and conditions of the Indenture, the
Company shall become obligated to purchase all or any part specified by the Holder (so long as the
principal amount of such part is $1,000 or an integral multiple of $1,000 in excess thereof) of the
Securities held by such Holder on the date that is 30 days after the date of the Company Change in
Control Notice, at a Change in Control Purchase Price in cash equal to 100% of the principal amount
thereof together with any accrued interest up to, but excluding, the Change in Control Purchase
Date; provided, however, if the Change in Control Purchase Date is an Interest
Payment Date, then interest on the Securities shall be payable to the Holders in whose name the
Securities are registered at the close of business on the Regular Record Date and such interest
shall not be payable as part of the Change in Control Purchase Price. The Holder shall have the
right to withdraw any Change in Control Purchase Notice (in whole or in a portion thereof that is
$1,000 or an integral multiple of $1,000 in excess thereof) at any time prior to the close of
business on the Business Day immediately preceding the Change in Control Purchase Date by
delivering a written notice of withdrawal to the Paying Agent in accordance with the terms of the
Indenture.

A-6

 

	8.  	PURCHASE OF SECURITIES AT OPTION OF HOLDER ON SPECIFIED DATES

          At the option of the Holder and subject to the terms and conditions of the Indenture, the
Company shall become obligated to purchase for cash all or any part specified by the Holder (so
long as the principal amount of such part is $1,000 or an integral multiple of $1,000 in excess
thereof) of the Securities held by such Holder on the applicable Put Right Purchase Date at the
applicable Put Right Purchase Price. The Holder shall have the right to withdraw any Put Right
Purchase Notice (in whole or in a portion thereof that is $1,000 or an integral multiple of $1,000
in excess thereof) at any time prior to the close of business on the Put Right Purchase Date by
delivering a written notice of withdrawal to the Paying Agent in accordance with the terms of the
Indenture.

	9.  	CONVERSION

          Subject to and upon compliance with the provisions of the Indenture and upon the occurrence of
the events specified in the Indenture, a Holder may surrender for conversion any Security that is
$1,000 principal amount or integral multiples thereof. In lieu of receiving shares of the
Company’s Common Stock, a Holder will receive, for each $1,000 principal amount of Securities
surrendered for conversion:

	 	•  	cash in an amount equal to the lesser of (1) $1,000 and (2) the Conversion Value, as
defined in the Indenture; and
	 
	 	•  	if the Conversion Value is greater than $1,000, a number of shares of the Company’s
Common Stock, equal to the sum of the Daily Share Amounts, as defined in the Indenture, for
each of the 30 consecutive Trading Days in the Conversion Reference Period, as defined in
the Indenture, subject to the Company’s right to deliver cash in lieu of all or a portion
of such shares as described in the Indenture.

	10.  	ADJUSTMENT TO CONVERSION RATE UPON CERTAIN CHANGES IN CONTROL

          In the event of certain changes in control, as specified in the Indenture, the Company will
increase the Conversion Rate, as defined in the Indenture, as to Securities converted in connection
with the change in control or, in lieu thereof, the Company may elect to adjust the Conversion Rate
and the related conversion obligation so that the Securities are convertible into shares of the
acquiring or surviving company, in each case as described in the Indenture.

	11.  	DENOMINATIONS, TRANSFER, EXCHANGE

          The Securities are in registered form, without coupons, in denominations of $1,000 and
integral multiples of $1,000. A Holder may register the transfer of or exchange Securities in
accordance with the Indenture. The Registrar may require a Holder, among other things, to furnish
appropriate endorsements and transfer documents and to pay any taxes or other governmental charges
that may be imposed in relation thereto by law or permitted by the Indenture.

	12.  	PERSONS DEEMED OWNERS

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

A-7

 

	13.  	UNCLAIMED MONEY

          If money for the payment of principal or interest or upon conversion, redemption or purchase
remains unclaimed for two years, the Trustee or Paying Agent will pay the money back to the Company
at its written request, subject to applicable unclaimed property law. After that, Holders entitled
to money must look to the Company for payment as general creditors unless an applicable abandoned
property law designates another person.

	14.  	AMENDMENT, SUPPLEMENT AND WAIVER

          Subject to certain exceptions, the Indenture or the Securities may be amended or supplemented
with the consent of the Holders of at least a majority in aggregate principal amount of the
Securities then outstanding, and an existing default or Event of Default and its consequence or
compliance with any provision of the Indenture or the Securities may be waived in a particular
instance with the consent of the Holders of a majority in aggregate principal amount of the
Securities then outstanding. Without the consent of or notice to any Holder, the Company and the
Trustee may amend or supplement the Indenture or the Securities to, among other things, cure any
ambiguity, defect or inconsistency or make any other change that does not adversely affect the
rights of any Holder.

	15.  	SUBORDINATION

          Payments of principal, or premium, if any, or interest on, or on account of the purchase,
redemption, conversion or other acquisition of the Securities will be subordinated in right of
payment, as set forth in the Indenture, to the prior payment in full in cash or cash equivalents
(or otherwise to the extent holders of senior indebtedness accept satisfaction of amounts due by
settlement in other than cash or cash equivalents) of all senior indebtedness whether outstanding
on the date of the Indenture or thereafter incurred.

	16.  	SUCCESSOR ENTITY

          When a successor Person assumes all the obligations of its predecessor under the Securities
and the Indenture in accordance with the terms and conditions of the Indenture, the predecessor
Person (except in certain circumstances specified in the Indenture) shall be released from those
obligations.

	17.  	DEFAULTS AND REMEDIES

          Under the Indenture, an Event of Default includes:

               (1) the failure of the Company to pay when due the principal of, or premium, if any, on any of
the Securities at the Final Maturity Date, or upon a redemption or purchase pursuant to Article 3
of the Indenture, whether or not such payment is prohibited by the provisions in Article 13 of the
Indenture;

               (2) the failure of the Company to pay an installment of interest on any of the Securities that
continues for 30 days after the date when due, whether or not such payment is prohibited by the
provisions in Article 13 of the Indenture;

               (3) the Company fails to satisfy in full its conversion obligations following conversion of
any Securities pursuant to Article 4 of the Indenture within the time periods contemplated by
Section 4.2(a) of the Indenture, whether or not such payment is prohibited by the provisions in
Article 13 of the Indenture;

A-8

 

               (4) the failure of the Company to perform or observe any other term, covenant or agreement
contained in the Securities or this Indenture for a period of 45 days after the Notice of Default
specified below is given;

               (5) the failure of the Company to timely provide the Company Change in Control Notice when
required by Section 3.7(d) of the Indenture; or

               (6) the failure of the Company to make any payment at the end of the applicable grace period,
if any, after the maturity of any indebtedness for borrowed money with an aggregate principal
amount then outstanding in excess of $15,000,000, whether such indebtedness now exists or shall
hereafter be created, or there is an acceleration of indebtedness for borrowed money in an amount
in excess of $15,000,000 because of a default with respect to such indebtedness, and such
indebtedness, in either case, is not discharged, or such acceleration is not cured, waived,
rescinded or annulled, within a period of 30 days after there shall have been given, a Notice of
Default, as defined below, requiring the Company to cause such indebtedness to be discharged or
cause such default to be cured or waived or such acceleration to be rescinded or annulled and
stating that such notice is a notice of default; or

               (7) the Company or any Significant Subsidiary of the Company pursuant to or within the meaning
of any Bankruptcy Law: (A) commences a voluntary case or proceeding, (B) consents to the entry of
an order for relief against it in an involuntary case or proceeding, (C) consents to the
appointment of a Custodian of it or for all or substantially all of its property, (D) makes a
general assignment for the benefit of its creditors, (E) files a petition in bankruptcy or answer
or consent seeking reorganization or relief or (F) consents to the filing of such a petition or the
appointment of or taking possession by a Custodian; or

               (8) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that:
(A) is for relief against the Company or any Significant Subsidiary of the Company in an
involuntary case or proceeding or adjudicates the Company or any Significant Subsidiary of the
Company insolvent or bankrupt, (B) appoints a Custodian of the Company or any Significant
Subsidiary of the Company or for all or substantially all of the property of the Company or any
Significant Subsidiary of the Company or (C) orders the winding up or liquidation of the Company or
any Significant Subsidiary of the Company;

and in each case the order or decree remains unstayed and in effect for 60 consecutive days.

          If an Event of Default (other than as a result of certain events of bankruptcy, insolvency or
reorganization of the Company) occurs and is continuing, the Trustee or the Holders of at least 25%
in aggregate principal amount of the Securities then outstanding may declare all unpaid principal
to the date of acceleration on the Securities then outstanding to be due and payable immediately,
all as and to the extent provided in the Indenture. Such declaration must be made via written
notice 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 Securities then
outstanding, which notice must specify the default and state that the notice is a Notice of Default
(the “Notice of Default”). If an Event of Default occurs as a result of certain events of
bankruptcy, insolvency or reorganization of the Company, unpaid principal of the Securities then
outstanding shall become due and payable immediately without any declaration or other act on the
part of the Trustee or any Holder, all as and to the extent provided in the Indenture. Holders may
not enforce the Indenture or the Securities except as provided in the Indenture. The Trustee may
require indemnity satisfactory to it before it enforces the Indenture or the Securities. Subject
to certain limitations, Holders of a majority in aggregate principal amount of the Securities then
outstanding may direct the Trustee in its exercise of any trust or power. The Trustee may withhold
from Holders notice of any continuing default

A-9

 

(except a default in payment of principal or interest) if it determines that withholding
notice is in their interests. The Company is required to file periodic reports with the Trustee as
to the absence of default.

	18.  	TRUSTEE DEALINGS WITH THE COMPANY

          U.S. Bank National Association, the Trustee under the Indenture, in its individual or any
other capacity, may make loans to, accept deposits from and perform services for the Company or any
Affiliate of the Company, and may otherwise deal with the Company or any Affiliate of the Company,
as if it were not the Trustee.

	19.  	NO RECOURSE AGAINST OTHERS

          A director, officer, employee or stockholder, as such, of the Company shall not have any
liability for any obligations of the Company under the Securities or the Indenture nor for any
claim based on, in respect of or by reason of such obligations or their creation. The Holder of
this Security by accepting this Security waives and releases all such liability. The waiver and
release are part of the consideration for the issuance of this Security.

	20.  	AUTHENTICATION

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

	21.  	ABBREVIATIONS AND DEFINITIONS

          Customary abbreviations may be used in the name of the Holder or an assignee, such as: TEN COM
(= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of
survivorship and not as tenants in common), CUST (= Custodian) and UGMA (= Uniform Gifts to Minors
Act).

          All terms defined in the Indenture and used in this Security but not specifically defined
herein are defined in the Indenture and are used herein as so defined.

	22.  	INDENTURE TO CONTROL; GOVERNING LAW

          In the case of any conflict between the provisions of this Security and the Indenture, the
provisions of the Indenture shall control. This Security shall be governed by, and construed in
accordance with, the laws of the State of New York.

          The Company will furnish to any Holder, upon written request and without charge, a copy of the
Indenture. Requests may be made to: Sybase, Inc., One Sybase Drive, Dublin, California 94568,
(925) 236-5000, Attention: General Counsel.

A-10

 

ASSIGNMENT FORM

          To assign this Security, fill in the form below:

          I or we assign and transfer this Security to

	 	 	 	 	 
	 
	 
	
	 	(Insert assignee’s soc. sec. or tax I.D. no.)	 	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 	 	(Print or type assignee’s name, address and zip code)	 	 
	 
	and irrevocably appoint
	 
	 
	 

agent to transfer this Security on the books of the Company. The agent may substitute another to
act for him or her.

	 	 	 	 	 
	

	 	 	 	Your Signature:
	 
	 	 	 	 
	 
	 	 	 	 
	Date:

	 	 
	 	 
	

	 	 
	 	 
	

	 	 	 	(Sign exactly as your name appears on the

other side of this Security)
	 
	 	 	 	 
	 
	 	 	 	 
	*Signature guaranteed by:
	 	 
	 
	 	 	 	 
	By:

	 	 	 	 
	

	 	 	 	 

	*	 	The signature must be guaranteed by an institution which is a member of one of
the following recognized signature guaranty programs: (i) the Securities Transfer
Agent Medallion Program (STAMP); (ii) the New York Stock Exchange Medallion Program
(MSP); (iii) the Stock Exchange Medallion Program (SEMP); or (iv) such other guaranty
program acceptable to the Trustee.

A-11

 

CONVERSION NOTICE

          To convert this Security, check the box: o

          To convert only part of this Security, state the principal amount to be converted (must be
$1,000 or a integral multiple of $1,000): $___.

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

	 	 	 	 	 
	 
	 
	 	 	(Insert assignee’s soc. sec. or tax I.D. no.)	 	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	
	 	(Print or type assignee’s name, address and zip code)	 	 

Please make payment of amounts due after conversion to:

Name: __________________________________________________

	 	 	 
	Address:

	 	 
	 
	 	 
	 
 	 	 
	 

Wire transfer instructions (if more than $2,000,000 of Securities are being converted and Holder
wishes to receive payment by wire transfer):

	 	 	 	 	 
	 
 
	 
 
	 
	

	 	 	 	Your Signature:
	 
	 	 	 	 
	 
	 	 	 	 
	Date:

	 	 
	 	 
	

	 	 
	 	 
	

	 	 	 	(Sign exactly as your name appears on the

other side of this Security)
	 
	 	 	 	 
	*Signature guaranteed by:	 	 
	 
	 	 	 	 
	By:

	 	 	 	 
	

	 	 	 	 

	*	 	The signature must be guaranteed by an institution which is a member of one of the following
recognized signature guaranty programs: (i) the Securities Transfer Agent Medallion Program
(STAMP); (ii) the New York Stock Exchange Medallion Program (MSP); (iii) the Stock Exchange
Medallion Program (SEMP); or (iv) such other guaranty program acceptable to the Trustee.

A-12

 

OPTION TO ELECT PURCHASE

UPON A CHANGE IN CONTROL

          To: Sybase, Inc.

          The undersigned registered owner of this Security hereby irrevocably acknowledges receipt of a
notice from Sybase, Inc. (the “Company”) as to the occurrence of a Change in Control with respect
to the Company and requests and instructs the Company to purchase the entire principal amount of
this Security, or the portion thereof (which is $1,000 or an integral multiple thereof) below
designated, in accordance with the terms of the Indenture referred to in this Security at the
Change in Control Purchase Price to the registered Holder hereof.

	 	 	 	 	 
	Dated:

	 	 
	 	 
	

	 	 
	 	 
	 	 	 	 	 
	

	 	 	 	 
	

	 	 	 	 
	

	 	 	 	Signature(s)
	 	 	 	 	 
	

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

	 	 
	 	 
	 	 	 	 	 
	

	 	 	 	 
	

	 	 	 	Signature Guaranty
	

	 	 	 	 
	Principal amount to be redeemed

(in an integral multiple of $1,000, if
less than all):	 	 
	

	 	 	 	 
	 	 	 

          NOTICE: The signature to the foregoing Election must correspond to the Name as written upon the
face of this Security in every particular, without alteration or any change whatsoever.

A-13

 

OPTION TO ELECT PURCHASE

ON SPECIFIED DATES

          To: Sybase, Inc.

          The undersigned hereby requests and instructs Sybase, Inc. to purchase the entire principal
amount of this Security, or the portion thereof (which is $1,000 or an integral multiple thereof)
below designated, on _________ in accordance with the terms of the Indenture referred to
in this Security at the Put Right Purchase Price to the registered Holder hereof.

	 	 	 	 	 
	Dated:

	 	 
	 	 
	

	 	 
	 	 
	

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

	 	 	 	 
	

	 	 	 	 
	

	 	 	 	 
	

	 	 	 	Signature Guaranty
	Principal amount to be redeemed

(in an integral multiple of $1,000, if less than all):	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 

NOTICE: The signature to the foregoing Election must correspond to the Name as written upon the
face of this Security in every particular, without alteration or any change whatsoever.

A-14

 

SCHEDULE OF EXCHANGES OF SECURITIES3

          The following exchanges, purchase, redemptions, purchases or conversions of a part of this
global Security have been made:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Principal Amount	 	 	 	 	 	 	 	 	 	 	 
	 	 	of this Global Note	 	 	Authorized	 	 	 	 	 	 	Amount of	 
	 	 	Following Such	 	 	Signatory of	 	 	Amount of Decrease in	 	 	Increase in	 
	 	 	Decrease Date	 	 	Securities	 	 	Principal Amount	 	 	Principal Amount	 
	 	 	of Exchange (or Increase)	 	 	Custodian	 	 	of this Global Note	 	 	of this Global Note	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 

A-15

 

CERTIFICATE TO BE DELIVERED UPON EXCHANGE OR REGISTRATION

OF TRANSFER OF RESTRICTED SECURITIES3

Re:    1.75% Convertible Subordinated Notes Due 2025 (the “Securities”) of Sybase, Inc.

          This certificate relates to $___principal amount of Securities owned in (check applicable
box)

          o
book-entry or  o definitive form by _________ (the “Transferor”).

          The Transferor has requested a Registrar or the Trustee to exchange or register the transfer
of such Securities.

          In connection with such request and in respect of each such Security, the Transferor does
hereby certify that the Transferor is familiar with transfer restrictions relating to the
Securities as provided in Section 2.12 of the Indenture dated as of February 22, 2005 between
Sybase, Inc. and U.S. Bank National Association, as trustee (the “Indenture”), and the transfer of
such Security is being made pursuant to an effective registration statement under the Securities
Act of 1933, as amended (the “Securities Act”) (check applicable box) or the transfer or exchange,
as the case may be, of such Security does not require registration under the Securities Act because
(check applicable box):

	 	o  	Such Security is being transferred pursuant to an effective registration statement
under the Securities Act.
	 
	 	o  	Such Security is being acquired for the Transferor’s own account, without transfer.
	 
	 	o  	Such Security is being transferred to the Company or a Subsidiary (as defined in the
Indenture) of the Company.
	 
	 	o  	Such Security is being transferred to a person the Transferor reasonably believes is
a “qualified institutional buyer” (as defined in Rule 144A or any successor provision
thereto (“Rule 144A”) under the Securities Act) that is purchasing for its own
account or for the account of a “qualified institutional buyer”, in each case to whom
notice has been given that the transfer is being made in reliance on such Rule 144A,
and in each case in reliance on Rule 144A.
	 
	 	o  	Such Security is being transferred pursuant to and in compliance with an exemption
from the registration requirements under the Securities Act in accordance with Rule
144 (or any successor thereto) (“Rule 144”) under the Securities Act.

          Such Security is being transferred pursuant to and in compliance with an exemption from the
registration requirements of the Securities Act (other than an exemption referred to above) and as
a result of which such Security will, upon such transfer, cease to be a “restricted security”
within the meaning of Rule 144 under the Securities Act.

A-16

 

          The Transferor acknowledges and agrees that, if the transferee will hold any such Securities
in the form of beneficial interests in a global Note which is a “restricted security” within the
meaning of Rule 144 under the Securities Act, then such transfer can only be made pursuant to Rule
144A under the Securities Act and such transferee must be a “qualified institutional buyer” (as
defined in Rule 144A).

 

	 	 	 	 	 
	Date:

	 	 
	 	 
	

	 	 
	 	 
	

	 	 	 	(Insert Name of Transferor)

 

 

 

A-17

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