Document:

EX-10.2

Exhibit 10.2

STANDBY PURCHASE AGREEMENT

     This Standby Purchase Agreement (this “Agreement”), dated as of April 4, 2009, is
entered into by and between BioMimetic Therapeutics, Inc., a Delaware corporation (the
“Company”), and Novo A/S (the “Standby Purchaser”), a Danish private limited
liability company.

     WHEREAS, the Company proposes, as soon as practicable after the Rights Offering Registration
Statement (as defined herein) becomes effective, to commence an offering to each of the holders of
its common stock, $0.001 par value (the “Common Stock”), of record as of the close of
business on the record date to be determined by the Company’s Board of Directors (the “Record
Date”), of non-transferable rights (the “Rights”) to subscribe for and purchase
additional shares of Common Stock (the “New Shares”) at a subscription price per share of
$8.50 for an aggregate offering amount of up to $17,000,000 (the “Subscription Price” and,
such offering, the “Rights Offering”); and

     WHEREAS, pursuant to the Rights Offering, the Company will distribute to each of its
stockholders of record, at no charge, one Right for each share of Common Stock held by the
stockholder of record as of the Record Date, and each Right will entitle the holder thereof to
purchase 0.107 New Shares from the Company (with fractional shares rounded up to the next whole
number of shares) at the Subscription Price (the “Basic Subscription Privilege”); and

     WHEREAS, each holder of Rights who exercises its Basic Subscription Privilege in full will be
entitled to subscribe for, at the Subscription Price, Unsubscribed Shares (as defined herein) to
the extent that other holders of Rights do not exercise all of their respective Basic Subscription
Privileges (the “Over-Subscription Privilege”); and

     WHEREAS, any holder of Rights, after exercising in full its Basic Subscription Privilege and
Over-Subscription Privilege, who has a subscription right to purchase a fractional share will be
permitted to subscribe for one additional full share in lieu of the fractional share that would
have been granted, without furnishing any additional rights (the “Step-Up Privilege”); and

     WHEREAS, in order to facilitate the Rights Offering, the Company has requested the Standby
Purchaser to agree, and the Standby Purchaser has agreed, subject to the terms and conditions of
this Agreement, that, to the extent New Shares are not purchased by the Company’s stockholders
pursuant to the exercise of Rights, the Standby Purchaser shall be deemed to have exercised such
Rights immediately prior to the expiration of the Offering Period and shall purchase such shares
from the Company at the Subscription Price pursuant to the exercise of such Rights (the
“Unsubscribed Shares”), subject to a maximum total commitment of $15,000,000.

     NOW, THEREFORE, in consideration of the foregoing and the mutual covenants herein contained
and other good and valuable consideration, the Company and the Standby Purchaser, intending to be
legally bound hereby, agree as follows:

 

 

     Section 1. Definitions.

     (a) Certain Defined Terms. The following terms used herein shall have the meanings set forth
below:

          (i) “Agreement” has the meaning set forth in the preamble hereto.

          (ii) “Base Prospectus” means the prospectus relating to the Common Stock included with
the Rights Offering Registration Statement, including the documents incorporated by reference
therein.

          (iii) “Basic Subscription Privilege” has the meaning set forth in the recitals hereto.

          (iv) “Board” means the board of directors of the Company.

          (v) “Business Day” shall mean any day that is not a Saturday, a Sunday, or a day on
which banks are required or permitted to be closed in the State of New York.

          (vi) “Closing” has the meaning set forth in Section 2(b).

          (vii) “Closing Date” has the meaning set forth in Section 2(b).

          (viii) “Commission” means the United States Securities and Exchange Commission.

          (ix) “Common Stock” has the meaning set forth in the recitals hereto.

          (x) “Company” has the meaning set forth in the preamble hereto.

          (xi) “Company Stockholder Approval” means, in compliance with Section 203 of the DGCL,
approval of the Company’s issuance of the New Shares to the Standby Purchaser by 66 2/3% of the
Company’s voting stock not owned by an interested stockholder.

          (xii) “DGCL” means the Delaware General Corporation Law.

          (xiii) “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the
rules and regulations promulgated by the Commission thereunder.

          (xiv) “Intellectual Property” has the meaning set forth in Section 5(n).

          (xv) “Interwest Partners” means InterWest Partners X, LP.

          (xvi) “InterWest Purchase Agreement” has the meaning set forth in Section 6(a)(vii).

          (xvii) “Issuer Free Writing Prospectus” means each “free writing prospectus” (as
defined in Rule 405 of the Securities Act) prepared by or on behalf of the Company or used or
referred to by the Company in connection with the Rights Offering.

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          (xviii) “Losses” has the meaning set forth in Section 10(a)(i).

          (xix) “Material Adverse Effect” means the occurrence, either individually or in the
aggregate, of any material adverse effect on the earnings, business, management, properties,
assets, rights, operations, condition (financial or otherwise) or prospects of the Company and of
the Subsidiaries taken as a whole, except any of the following, either alone or in combination,
shall not be deemed a Material Adverse Effect: (i) effects caused by changes or circumstances
affecting general market conditions in the U.S. economy or that are generally applicable to the
industry in which the Company operates, provided that such effects do not adversely affect the
Company in a disproportionate manner, (ii) effects resulting from or relating to the announcement
or disclosure of the sale of the Rights Offering or other transactions contemplated by this
Agreement, or (iii) effects caused by any event, occurrence or condition resulting from or relating
to the taking of any action in accordance with this Agreement.

          (xx) “New Shares” shall have the meaning set forth in the recitals hereto.

          (xxi) “Offering Period” means the period of time from the Record Date until the
expiration date of the Rights Offering.

          (xxii) “Over-Subscription Privilege” has the meaning set forth in the recitals hereto.

          (xxiii) “Person” means an individual, corporation, partnership, association, joint
stock company, limited liability company, joint venture, trust, governmental entity, unincorporated
organization or other legal entity.

          (xxiv) “Preliminary Prospectus” means the preliminary prospectus supplement to the
Base Prospectus relating to the Rights Offering, filed with the Commission, pursuant to Rule 424
under the Securities Act, together with the Base Prospectus, including the documents incorporated
by reference therein.

          (xxv) “Products” has the meaning set forth in Section 5(n).

          (xxvi) “Prospectus” means the final prospectus supplement to the Base Prospectus
relating to the Rights Offering filed with the Commission, pursuant to Rule 424 under the
Securities Act, together with the Base Prospectus, including the documents incorporated by
reference therein.

          (xxvii) “Proxy Statement” means the definitive proxy statement filed with the
Commission relating to the Company Stockholder Approval and the transactions contemplated
hereunder, together with all amendments, supplements and exhibits thereto.

          (xxviii) “Record Date” has the meaning set forth in the recitals hereto.

          (xxix) “Rights” has the meaning set forth in the recitals hereto.

          (xxx) “Rights Offering” has the meaning set forth in the recitals hereto.

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          (xxxi) “Rights Offering Expiration Date” means the date on which the subscription
period under the Rights Offering expires.

          (xxxii) “Rights Offering Registration Statement” means the Company’s Registration
Statement on Form S-3 under the Securities Act or such other appropriate form under the Securities
Act, pursuant to which the shares of Common Stock underlying the Rights will be registered pursuant
to the Securities Act.

          (xxxiii) “Rules and Regulations” means the rules and regulations promulgated under the
Securities Act.

          (xxxiv) “Securities Act” means the Securities Act of 1933, as amended and the rules
and regulations promulgated by the Commission thereunder.

          (xxxv) “Shelf Base Prospectus” means the prospectus relating to the Common Stock
included with the Shelf Registration Statement, including the documents incorporated by reference
therein.

          (xxxvi) “Shelf Prospectus” means the final prospectus supplement to the Shelf Base
Prospectus relating to the Shelf Registration Statement filed with the Commission, pursuant to Rule
424 under the Securities Act, together with the Shelf Base Prospectus, including the documents
incorporated by reference therein.

          (xxxvii) “Shelf Registration Statement” shall mean the Company’s Registration
Statement on Form S-3 under the Securities Act or such other appropriate form under the Securities
Act, pursuant to which, among other securities, the Standby Purchase Commitment will be registered
pursuant to the Securities Act.

          (xxxviii) “Specified Courts” has the meaning set forth in Section 11(f).

          (xxxix) “Standby Purchase Commitment” means the number of New Shares allocated to the
Standby Purchaser by the Company at the Standby Purchase Commitment Price following the close of
the Offering Period pursuant to the terms of this Agreement.

          (xl) “Standby Purchase Commitment Price” means the Subscription Price.

          (xli) “Standby Purchaser” has the meaning set forth in the preamble hereto.

          (xlii) “Step-Up Privilege” has the meaning set forth in the recitals hereto.

          (xliii) “Subscription Agent” has the meaning set forth in Section 6(a).

          (xliv) “Subscription Price” has the meaning set forth in the recitals hereto.

          (xlv) “Subsidiary” or “Subsidiaries” has the meaning set forth in Section 5(a).

          (xlvi) “Unsubscribed Shares” has the meaning set forth in the recitals hereto.

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     Section 2. Standby Purchase Commitment.

     (a) Standby Purchase Commitment.

          (i) If and to the extent Unsubscribed Shares are not purchased by the Company’s other
stockholders pursuant to the exercise of Rights (including the Basic Subscription Privilege and the
Over-Subscription Privilege) under the Rights Offering, the Standby Purchaser shall be deemed to
have exercised such Rights immediately prior to the expiration of the Rights Offering and shall be
entitled to and hereby agrees to purchase from the Company, and the Company hereby agrees to sell
to the Standby Purchaser, at the Subscription Price, all such remaining New Shares, subject to a
maximum total commitment of the Standby Purchaser of $15,000,000, including any New Shares
purchased by the Standby Purchaser in the Rights Offering pursuant to its Basic Subscription
Privilege.

          (ii) The Standby Purchaser and the Company hereby agree that it is the intent of both parties
that the Standby Purchaser, by virtue of acting hereunder, shall not be deemed an “underwriter”
within the definition of Section 2(a)(11) of the Securities Act or deemed to be engaged in
broker-dealer activity requiring registration under Section 15 of the Exchange Act, and the Standby
Purchaser and Company shall in the fulfillment of their obligations hereunder act in accordance
with this mutual understanding.

     (b) Closing. On the basis of the representations and warranties and subject to the terms and
conditions herein set forth, the closing of the purchase and sale of the Standby Purchase
Commitment (the “Closing”) shall take place at the offices of Morrison & Foerster LLP, at
10:00 a.m., New York City time, on or before the third Business Day after the Rights Offering
Expiration Date; provided, that the Closing may take place at such other place, time or
date as shall be mutually agreed upon by the Company and the Standby Purchaser (the date of the
Closing, the “Closing Date”).

     (c) Deliveries at Closing.

          (i) At the Closing, the Company shall deliver to the Standby Purchaser the following:

               (1) A certificate or certificates in book-entry form, registered in the name of the Standby
Purchaser, representing the Standby Purchase Commitment that is allocated to the Standby Purchaser.
The certificate or certificates for the Standby Purchase Commitment shall be registered in such
names and in such denominations as the Standby Purchaser may request not less than two Business
Days prior to the Closing Date.

               (2) A certificate of an officer of the Company on its behalf to the effect that the
representations and warranties of the Company contained in this Agreement are true and correct in
all material respects as of the date hereof, and that as of the Closing Date the Company has
complied with all covenants and other obligations of the Company set forth in this Agreement.

               (3) A legal opinion of counsel to the Company substantially in the form attached hereto as
Exhibit A.

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          (ii) At the Closing, the Standby Purchaser shall deliver to the Company the following:

               (1) The Standby Purchase Commitment Price for the Standby Purchase Commitment, which shall be
paid by the Standby Purchaser to the Company in U.S. federal (same day) funds to an account
designated in writing by the Company at least two Business Days prior to the Closing Date.

               (2) A certificate of the Standby Purchaser to the effect that the representations and
warranties of the Standby Purchaser are true and correct in all material respects on and as of the
date hereof.

     Section 3. Representations and Warranties of the Standby Purchaser. The Standby Purchaser
represents and warrants to the Company, as of the date hereof and as of the Closing Date, as
follows:

     (a) Organization. The Standby Purchaser is a limited liability company duly organized,
validly existing and in good standing under the laws of its jurisdiction of formation and has the
requisite limited liability company power and authority to carry on its business as it is now being
conducted.

     (b) Due Authorization. The Standby Purchaser has the requisite limited liability company
power and authority to enter into this Agreement and to consummate the transactions contemplated
hereby and the execution and delivery by the Standby Purchaser of this Agreement, the purchase of
the Standby Purchase Commitment and the consummation of the transactions contemplated hereby (a)
are within the limited liability company power and authority of the Standby Purchaser and (b) have
been duly authorized by all necessary limited liability company action of the Standby Purchaser.
This Agreement has been duly and validly executed and delivered by the Standby Purchaser. Assuming
the due authorization, execution and delivery by the Company of this Agreement, this Agreement
constitutes a valid and binding obligation of the Standby Purchaser enforceable against it in
accordance with its terms, except as such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization or other similar laws relating to enforcement of creditors’ rights
generally, and general equitable principles relating to the availability of remedies and the public
policy underlying such laws.

     (c) No Conflicts. The execution, delivery and performance of this Agreement by the Standby
Purchaser, the purchase of the Standby Purchase Commitment and the consummation by the Standby
Purchaser of the other transactions contemplated by this Agreement and the compliance by the
Standby Purchaser with the terms of this Agreement do not and will not conflict with or do not
result and will not result in any breach or violation of any of the terms or provisions of, or do
not constitute or will not constitute a default under, do not cause or will not cause (or do not
permit or will not permit) the maturation or acceleration of any liability or obligation or the
termination of any right under, or do not result in the creation or imposition of any lien, charge
or encumbrance upon, any property or assets of the Standby Purchaser pursuant
to the terms of (i) the charter or bylaws or other applicable organizational documents of the
Standby Purchaser; (ii) any indenture, mortgage, deed of trust, voting trust agreement,
stockholders’ agreement, note agreement or other agreement or instrument to which the Standby

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Purchaser is a party or by which it is bound or to which its respective property is subject; or
(iii) any statute, judgment, decree, order, rule or regulation applicable to the Standby Purchaser
of any government, arbitrator, court, regulatory body or administrative agency or other
governmental agency or body, domestic or foreign, having jurisdiction over the Standby Purchaser or
its activities or properties, which materially and adversely affects the business or properties of
the Standby Purchaser.

     (d) No Consent. No authorization, approval, consent or license of any government,
governmental instrumentality or court, domestic or foreign (other than under the Securities Act and
the securities or blue sky laws of the various states) is required for the purchase of the shares
underlying the Standby Purchase Commitment, if any, to be purchased by the Standby Purchaser
hereunder and the consummation by such Standby Purchaser of the transactions contemplated by this
Agreement.

     (e) Information. The Standby Purchaser and its advisers have been furnished with all
materials relating to the business, finances and operations of the Company and materials relating
to the offer and sale of the Standby Purchase Commitment which have been requested by such Standby
Purchaser or its advisers. The Standby Purchaser is familiar with the business in which the
Company is engaged, and based upon its knowledge and experience in financial and business matters,
the Standby Purchaser is familiar with the investments of the type that it is undertaking to
purchase; is fully aware of the problems and risks involved in making an investment of this type;
and is capable of evaluating the merits and risks of this investment.

     (f) Confidentiality. The Standby Purchaser and its affiliates acknowledge that, in receiving
information about the terms of this Agreement and about the Company in connection with this
Agreement, they may have received material non-public information within the meaning of the U.S.
federal securities laws. As such, if and to the extent that the Standby Purchaser or its
affiliates have received material non-public information within the meaning of the U.S. federal
securities laws, neither the Standby Purchaser nor its affiliates has and none of them will
purchase (other than in connection with the Standby Purchase Commitment) or sell any securities of
the Company, in a transaction that would violate applicable U.S. federal securities laws as a
result of the Standby Purchaser or its affiliates having any such material non-public information,
from the date of this Agreement until after the Closing Date or the earlier termination of the
Standby Purchaser’s obligations under Section 2 of this Agreement.

     (g) Short Sales. Since being contacted by the Company, the Standby Purchaser has not taken
any action that has caused the Standby Purchaser to have, directly or indirectly, sold or agreed to
sell any shares of Common Stock, effected any short sale, whether or not against the box,
established any “put equivalent position” (as defined in Rule 16a-1(h) under the Exchange Act) with
respect to the Common Stock, granted any other right (including, without limitation, any put or
call option) with respect to the Common Stock or with respect to any security that includes,
relates to or derived any significant part of its value from the Common Stock.

     (h) Market Stabilization. The Standby Purchaser has not taken and the Standby Purchaser will
not take, directly or indirectly, any action designed to or that might reasonably be expected to
result in stabilization or manipulation of the price of the shares of Common Stock to facilitate
the sale or resale of the Standby Purchase Commitment.

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     (i) Control. The Standby Purchaser is acquiring the Standby Purchase Commitment in the
ordinary course of its business and not with the purpose nor with the effect of changing or
influencing the control of the Company, nor in connection with or as a participant in any
transaction having such purpose or effect, including any transaction subject to Rule 13d-3(b) under
the Exchange Act.

     (j) Accredited Investor Status. The Standby Purchaser was not created for the purpose of
acquiring the Standby Purchase Commitment and is an “accredited investor,” as that term is as
defined in Rule 501(a) of Regulation D under the Securities Act. The Standby Purchaser, either
alone or together with its representatives, has such knowledge, sophistication and experience in
business and financial matters so as to be capable of evaluating the merits and risks of the
prospective investment in the Standby Purchase Commitment, and has so evaluated the merits and
risks of such investment. The Standby Purchaser is able to bear the economic risk of an investment
in the Standby Purchase Commitment and, at the present time, is able to afford a complete loss of
such investment. The Standby Purchaser understands that its investment in the Standby Purchase
Commitment involves a significant degree of risk. Such Standby Purchaser is a “qualified
institutional buyer” (as defined in Rule 144A promulgated under the Securities Act).

     (k) Acquisition for Investment. The Standby Purchaser is acquiring the Standby Purchase
Commitment as principal for its own account for investment purposes only and not with a view to or
for distributing or reselling such Standby Purchase Commitment or any part thereof, has no present
intention of distributing any of such Standby Purchase Commitment and has no arrangement or
understanding with any other Persons regarding the distribution of such Standby Purchase
Commitment; provided, however, that in making such representation, the Standby
Purchaser does not agree to hold the Standby Purchase Commitment for any minimum or specific term
and reserves the right to sell, transfer or otherwise dispose of the Standby Purchase Commitment at
any time in accordance with federal and state securities laws applicable to such sale, transfer or
disposition.

     (l) Relationship with Company. The Standby Purchaser has no position or office with the
Company and owns 3,326,159 shares of the Company’s Common Stock as of the date of this Agreement.

     (m) Standby Purchaser Activities. The Standby Purchaser is not a broker-dealer and does not
need to be registered as a broker-dealer.

     Section 4. Covenants of the Standby Purchaser.

     Neither the Standby Purchaser nor any of its affiliates will contact or communicate with any
Rights holders regarding the Standby Purchase Commitment without first notifying the Company.

     Section 5. Representations and Warranties of the Company. The Company hereby represents and
warrants to the Standby Purchaser as follows:

     (a) Organization and Qualification. The Company is a corporation duly incorporated, validly
existing and in good standing under the laws of its jurisdiction of incorporation with corporate
power and authority to own or lease its properties and conduct its

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business as described in the SEC
Reports (as defined below) and the Company is qualified to do business as a foreign corporation in
each jurisdiction in which qualification is required, except where failure to so qualify would not
have a Material Adverse Effect. The Company’s subsidiaries (each a “Subsidiary” and
collectively the “Subsidiaries”) are listed on Exhibit B to this Agreement and are the only
subsidiaries, direct or indirect, of the Company. Each Subsidiary is a direct or indirect wholly
owned subsidiary of the Company. Each Subsidiary is duly organized, validly existing and in good
standing under the laws of its jurisdiction of incorporation, with corporate power and authority to
own or lease its properties and conduct its business as currently carried out, and is qualified to
do business as a foreign corporation in each jurisdiction in which qualification is required,
except where failure to so qualify would not have a Material Adverse Effect.

     (b) Authorized Capital Stock. As of the date hereof, the authorized, issued and outstanding
share capital of the Company is as set forth on Schedule 5(b) hereto. The issued and
outstanding shares of Common Stock have been duly authorized and validly issued, are fully paid and
nonassessable, have been issued in compliance with all federal and state securities laws, were not
issued in violation of or subject to any preemptive rights or other rights to subscribe for or
purchase securities. Other than employee stock options, the Company does not have outstanding any
options to purchase, or any preemptive rights or other rights to subscribe for or to purchase, any
securities or obligations convertible into, or any contracts or commitments to issue or sell,
shares of its capital stock or any such options, rights, convertible securities or obligations.
With respect to each of the Subsidiaries (i) all the issued and outstanding shares of such
Subsidiary’s capital stock have been duly authorized and validly issued, are fully paid and
nonassessable, have been issued in compliance with all federal and state securities laws, were not
issued in violation of or subject to any preemptive rights or other rights to subscribe for or
purchase securities, and are owned by the Company free and clear of all liens, encumbrances and
equities and claims, and (ii) there are no outstanding options to purchase, or any preemptive
rights or other rights to subscribe for or to purchase, any securities or obligations convertible
into, or any contracts or commitments to issue or sell, shares of such Subsidiary’s capital stock
or any such options, rights, convertible securities or obligations.

     (c) Issuance, Sale and Delivery of the New Shares. The New Shares will have been duly
authorized (assuming Company Stockholder Approval) and, when issued, delivered and paid for in the
manner set forth in this Agreement, will be validly issued, fully paid and nonassessable. No
preemptive rights or other rights to subscribe for or purchase any shares of Common Stock of the
Company exist with respect to the issuance and sale of the New Shares by the Company pursuant to
this Agreement.

     (d) Due Execution, Delivery and Performance of the Agreements. The Company has full legal
right, corporate power and authority to enter into this Agreement and perform the transactions
contemplated hereby. This Agreement has been duly authorized, executed and
delivered by the Company. This Agreement constitutes a legal, valid and binding agreement of
the Company, enforceable against the Company in accordance with its terms, except as enforceability
may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws of
general application relating to or affecting the enforcement of creditors’ rights and the
application of equitable principles relating to the availability of remedies, and except as rights
to indemnity or contribution, including but not limited to, indemnification provisions set

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forth in
Section 9 of this Agreement may be limited by federal or state securities law or the public policy
underlying such laws. The execution and performance of this Agreement by the Company and the
consummation of the transactions herein contemplated will not violate any provision of the
certificate of incorporation or bylaws of the Company or the organizational documents of any
Subsidiary and will not result in the creation of any lien, charge, security interest or
encumbrance upon any assets of the Company or any Subsidiary pursuant to the terms or provisions
of, or will not conflict with, result in the breach or violation of, or constitute, either by
itself or upon notice or the passage of time or both, a default under any agreement, mortgage, deed
of trust, lease, franchise, license, indenture, permit or other instrument to which any of the
Company or any Subsidiary is a party or by which any of the Company or any Subsidiary or their
respective properties may be bound or affected and in each case that would have a Material Adverse
Effect or, to the Company’s knowledge, any statute or any authorization, judgment, decree, order,
rule or regulation of any court or any regulatory body, administrative agency or other governmental
agency or body applicable to the Company or any Subsidiary or any of their respective properties.
No consent, approval, authorization or other order of any court, regulatory body, administrative
agency or other governmental agency or body is required for the execution and delivery of this
Agreement or the consummation of the transactions contemplated by this Agreement, except for
compliance with the Blue Sky laws and federal securities laws applicable to the offering of the New
Shares.

     (e) Reporting Company; Form S-3. The Company is not an “ineligible issuer” (as defined in
Rule 405 promulgated under the Securities Act) and is eligible to register the New Shares for
resale by the Standby Purchaser on a registration statement on Form S-3 under the Securities Act.
The Company is subject to the reporting requirements of the Exchange Act, and has filed all reports
required thereby. Provided neither the Standby Purchaser nor any holder of common stock is deemed
to be an underwriter with respect to any shares, to the Company’s knowledge, there exist no facts
or circumstances (including without limitation any required approvals or waivers or any
circumstances that may delay or prevent the obtaining of accountant’s consents) that reasonably
could be expected to prohibit or delay the preparation and filing of the Rights Offering
Registration Statement or the Shelf Registration Statement that will be available for the resale of
the New Shares by the Standby Purchaser.

     (f) Rights Offering Registration Statement and Prospectus and Shelf Registration Statement and
Shelf Prospectus. At the time each of the Rights Offering Registration Statement and Shelf
Registration Statement becomes effective, such registration statement will comply in all material
respects with the requirements of the Securities Act and will not contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or necessary to make
the statements therein not misleading. The Prospectus, at the time the Rights Offering Registration
Statement becomes effective and at the Closing Date, and the Shelf Prospectus, at the time the
Shelf Registration Statement becomes effective, will not include an untrue statement of a material
fact or omit to state a material fact necessary in order to
make the statements therein, in light of the circumstances under which they were made, not
misleading; provided, however, that the representations and warranties in this
subsection shall not apply to statements in or omissions from the Rights Offering Registration
Statement or the Prospectus, or the Shelf Registration Statement or the Shelf Prospectus, made in
reliance upon and in conformity with the information furnished to the Company in writing by the
Standby Purchaser for use in the Rights Offering Registration Statement or in the Prospectus, or in
the

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Shelf Registration Statement or the Shelf Prospectus. The documents incorporated by reference
into each of the Prospectus and the Shelf Prospectus, when they become effective or at the time
they are filed with the Commission, as the case may be, will comply in all material respects with
the applicable provisions of the Exchange Act.

     (g) Proxy Statement. The Proxy Statement will not, on the date it is first mailed to
stockholders of the Company, contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary in order to make the statements therein,
in light of the circumstances under which they are made, not misleading and will not, at the time
of the Company Stockholder Approval, omit to state any material fact necessary to correct any
statement in any earlier communication from the Company with respect to the solicitation of proxies
for the Company Stockholder Approval which shall have become false or misleading in any material
respect. The Proxy Statement will comply as to form in all material respects with the applicable
requirements of the Exchange Act. Notwithstanding the foregoing, the Company makes no
representation or warranty with respect to information furnished to the Company in writing by the
Standby Purchaser for inclusion or incorporation by reference in any of the foregoing documents.

     (h) Accountants. Ernst & Young LLP, who has expressed its opinion with respect to the
consolidated financial statements contained in the Company’s Annual Report on Form 10-K for the
year ended December 31, 2008, which will be incorporated by reference into the (A) Rights Offering
Registration Statement and the Prospectus that forms a part thereof, and the (B) Shelf Registration
Statement and the Shelf Prospectus that forms a part thereof, are registered independent public
accountants as required by the Securities Act and the rules and regulations promulgated by the
Commission thereunder and by the rules of the Public Company Accounting Oversight Board.

     (i) No Defaults or Consents. Neither the execution, delivery and performance of this
Agreement by the Company nor the consummation of any of the transactions contemplated hereby
(including, without limitation, the issuance and sale by the Company of the New Shares) will give
rise to a right to terminate or accelerate the due date of any payment due under, or conflict with
or result in the breach of any term or provision of, or constitute a default (or an event which
with notice or lapse of time or both would constitute a default) under, except such defaults that
individually or in the aggregate would not cause a Material Adverse Effect, or require any consent
or waiver under, or result in the execution or imposition of any lien, charge or encumbrance upon
any properties or assets of the Company or its subsidiaries pursuant to the terms of, any
indenture, mortgage, deed of trust or other agreement or instrument to which the Company or any of
its subsidiaries is a party or by which either the Company or its subsidiaries or any of their
properties or businesses is bound, or any franchise, license, permit, judgment, decree, order,
statute, rule or regulation applicable to the Company or any of its subsidiaries or
violate any provision of the charter or by-laws of the Company or any of its subsidiaries,
except for such consents or waivers which have already been obtained and are in full force and
effect.

     (j) Contracts. The material contracts to which the Company is a party that are filed pursuant
to the Securities Act or the Exchange Act, with the Commission by the Company have been duly and
validly authorized, executed and delivered by the Company and constitute the legal, valid and
binding agreements of the Company, enforceable by and against it in accordance

11

 

with their
respective terms, except as such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization or other similar laws relating to enforcement of creditors’ rights
generally, and general equitable principles relating to the availability of remedies, and except as
rights to indemnity or contribution may be limited by federal or state securities laws and the
public policy underlying such laws.

     (k) No Actions. There are no legal or governmental actions, suits or proceedings pending or,
to the Company’s knowledge, threatened against the Company or any Subsidiary before or by any
court, regulatory body or administrative agency or any other governmental agency or body, domestic,
or foreign, which actions, suits or proceedings, individually or in the aggregate, might reasonably
be expected to have a Material Adverse Effect; and no labor disturbance by the employees of the
Company exists or, to the Company’s knowledge, is imminent, that might reasonably be expected to
have a Material Adverse Effect. Neither the Company nor any Subsidiary is a party to or subject to
the provisions of any injunction, judgment, decree or order of any court, regulatory body,
administrative agency or other governmental agency or body that might have a Material Adverse
Effect.

     (l) Properties. The Company and each Subsidiary has good and marketable title to all the
properties and assets described as owned by it in the consolidated financial statements, free and
clear of all liens, mortgages, pledges, or encumbrances of any kind except (i) those, if any,
reflected in such consolidated financial statements, or (ii) those that are not material in amount
and do not adversely affect the use made and proposed to be made of such property by the Company or
its Subsidiaries. The Company and each Subsidiary holds its leased properties under valid and
binding leases. The Company and any Subsidiary owns or leases all such properties as are necessary
to its operations as now conducted.

     (m) No Material Adverse Change. Except as set forth on Schedule 5(m), since December
31, 2008, (i) the Company and its Subsidiaries have not incurred any material liabilities or
obligations, indirect, or contingent, or entered into any material agreement or other transaction
that is not in the ordinary course of business or that could reasonably be expected to result in a
material reduction in the future earnings of the Company; (ii) the Company and its Subsidiaries
have not sustained any material loss or interference with their businesses or properties from fire,
flood, windstorm, accident or other calamity not covered by insurance; (iii) the Company and its
Subsidiaries have not paid or declared any dividends or other distributions with respect to their
capital stock and none of the Company or any Subsidiary is in default in the payment of principal
or interest on any outstanding debt obligations; (iv) there has not been any change in the capital
stock of the Company or its Subsidiaries other than the sale of the Shares hereunder and shares or
options issued pursuant to employee equity incentive plans or purchase plans approved by the Board,
or indebtedness material to the Company or its Subsidiaries (other than in the ordinary course of
business and any required scheduled
payments); and (v) there has not occurred any event that has caused or could reasonably be
expected to cause a Material Adverse Effect.

     (n) Intellectual Property. To the Company’s knowledge, the Company owns, or has obtained
valid and enforceable licenses for, or other legal rights to use, the inventions, patent
applications, patents, utility models, industrial property, trademarks (both registered and
unregistered), trade names, service marks (both registered and unregistered), service names,

12

 

copyrights, trade secrets, customer lists, designs, manufacturing or other processes, computer
software, systems, data compilations, research results, know-how or other proprietary rights and
information owned or licensed by the Company, or used in the Company’s business as presently
conducted with respect to the research, development, testing and marketing of Augment Bone Graft,
Augment Injectable Bone Graft, and the other product candidates (collectively, the
“Products”), except as set forth on Schedule 5(n) or where the failure to own,
license or otherwise enjoy such rights would not, individually or in the aggregate, have a Material
Adverse Effect (collectively, “Intellectual Property”). To the Company’s knowledge, all of
such patents, registered trademarks and registered copyrights owned or licensed by the Company have
been duly registered in, filed in or issued by the United States Patent and Trademark Office (the
“USPTO”), the United States Copyright Office or the corresponding offices of other
jurisdictions and have been maintained and renewed in accordance with all applicable provisions of
law and administrative regulations in the United States and all such other jurisdictions, except
where the failure to do so, individually or in the aggregate, would not have a Material Adverse
Effect. The Company has taken all steps required in accordance with sound business practice and
business judgment to establish and preserve its ownership of or rights to all material Intellectual
Property. Except as set forth on Schedule 5(n), to the Company’s knowledge, there are no
third parties who have or will be able to establish rights to any Intellectual Property related to
the Products. To the Company’s knowledge, there is no infringement by third parties of any of the
Intellectual Property. Except as set forth on Schedule 5(n), to the Company’s knowledge,
there is no pending or threatened action, suit, proceeding or claim by others challenging the
Company’s rights in or to any Intellectual Property, and the Company is unaware of any facts that
could form a reasonable basis for any such action, suit, proceeding or claim. Except as set forth
on Schedule 5(n), there is no pending, or to the Company’s knowledge, threatened action,
suit, proceeding or claim by others challenging the validity, enforceability or scope of any
Intellectual Property, and the Company is unaware of any facts that could form a reasonable basis
for any such action, suit, proceeding or claim. To the Company’s knowledge, the Company has not
formerly and presently is not infringing or violating the Intellectual Property of any other
person. Except as set forth on Schedule 5(n), there is no pending, or to the Company’s
knowledge, threatened action, suit, proceeding or claim by another that the Company infringes or
otherwise violates any Intellectual Property, and the Company is unaware of any facts that could
form a reasonable basis for any such action, suit, proceeding or claim. To the Company’s
knowledge, the manufacture, use, sale, offer for sale or import of any Product by the Company would
not infringe any claim of any patent of another, except that of a licensor who has granted the
Company a license under any such patent. No proceeding charging the Company with infringement of
any adversely held Intellectual Property has been filed. The Company is in compliance with the
terms of all agreements pursuant to which Intellectual Property has been licensed to the Company.
All such agreements are in full force and effect and there is no default by the Company thereto,
and to the Company’s knowledge, no notice of default thereunder has been threatened against the
Company. To the Company’s knowledge, sublicenses granted to
others are now in compliance with the terms of all agreements pursuant to which Intellectual
Property has been sublicensed by the Company. To the Company’s knowledge, all such agreements are
in full force and effect and there is no default by any sublicensee thereto. To the Company’s
knowledge, there is no patent or patent application containing claims that interfere with the
issued or pending claims of any patent owned by or licensed to the Company. The Company is not
aware of any fact from which it could reasonably be inferred that an individual

13

 

associated with the
filing and prosecution of any patent owned by or licensed to the Company failed to disclose to the
USPTO all information known to that individual to be material to patentability. The Products fall
within the scope of one or more claims of one or more patents owned by or licensed to the Company.
Upon the making, selling, offering for sale or importing into the United States of any product
covered by one or more claims of a United States patent owned or licensed by the Company, the
Company will comply with the marking and notice requirements of 35 U.S.C. § 287(a).

     (o) Compliance. The Company has all necessary licenses, authorizations, consents and
approvals and has made all necessary filings required under any federal, state, local or foreign
law, regulation or rule, and has obtained all necessary licenses, authorizations, consents and
approvals from other persons, in order to conduct its business, except where the absence of such
license, authorization, consent, approval or filing would not, individually or in the aggregate,
have a Material Adverse Effect. The Company is not in violation of, or in default under, and has
not received notice of any proceedings relating to revocation or modification of, any such license,
authorization, consent or approval or any federal, state, local or foreign law, regulation or rule
or any decree, order or judgment applicable to the Company, except where such violation, default,
revocation or modification would not, individually or in the aggregate, have a Material Adverse
Effect. None of the Company nor its Subsidiaries has been advised, nor do any of them have any
reason to believe, that it is not conducting business in compliance with all applicable laws, rules
and regulations of the jurisdictions in which it is conducting business, including, without
limitation, all applicable local, state and federal environmental laws and regulations, except
where failure to be so in compliance would not have a Material Adverse Effect.

     (p) Taxes. The Company and each Subsidiary has filed on a timely basis (giving effect to
extensions) all required federal, state and foreign income and franchise tax returns and has paid
or accrued all taxes shown as due thereon, and none of the Company or any subsidiary has knowledge
of a tax deficiency that has been or might be asserted or threatened against it that could have a
Material Adverse Effect. All tax liabilities accrued through the date hereof have been adequately
provided for on the books of the Company.

     (q) Transfer Taxes. On the Closing Date, all stock transfer or other taxes (other than income
taxes) that are required to be paid in connection with the sale and transfer of the New Shares to
be sold to the Purchaser hereunder will have been, fully paid or provided for by the Company and
all laws imposing such taxes will have been fully complied with.

     (r) Investment Company. The Company is not an “investment company” or an “affiliated person”
of, or “promoter” or “principal underwriter” for an investment company, within the meaning of the
Investment Company Act of 1940, as amended, and the rules and regulations of the Commission
promulgated thereunder.

     (s) Offering Materials. Each of the Company, its directors and officers has not distributed
and will not distribute prior to the Closing Date any offering material, including any “free
writing prospectus” (as defined in Rule 405 promulgated under the Securities Act), in connection
with the offering and sale of the New Shares.

14

 

     (t) Insurance. The Company maintains insurance underwritten by insurers of recognized
financial responsibility, of the types and in the amounts that the Company reasonably believes is
adequate for its business, including, but not limited to, insurance covering all real and personal
property owned or leased by the Company against theft, damage, destruction, acts of vandalism and
all other risks customarily insured against, with such deductibles as are customary for companies
in the same or similar business, all of which insurance is in full force and effect.

     (u) Price of Common Stock. Neither the Company nor any Subsidiary, nor, to the Company’s
knowledge, any of their respective directors, officers, affiliates or controlling persons, has
taken, and will not take, directly or indirectly, any action designed to cause or result in, or
that has constituted or that might reasonably be expected to constitute, the stabilization or
manipulation of the price of the shares of the Common Stock to facilitate the sale or resale of the
New Shares.

     (v) Non-Public Information. The Company has not disclosed to the Purchaser information that
would constitute material non-public information as of the Closing Date other than the existence of
the transaction contemplated hereby.

     (w) Off-Balance Sheet Arrangements. There is no transaction, arrangement or other
relationship between the Company and an unconsolidated or other off-balance sheet entity that is
required to be disclosed by the Company in its Exchange Act filings and is not so disclosed or that
otherwise would be reasonably likely to have a Material Adverse Effect. There are no such
transactions, arrangements or other relationships with the Company that may create contingencies or
liabilities that are not otherwise disclosed by the Company in its Exchange Act filings.

     (x) Governmental Permits, Etc. The Company and each Subsidiary has all franchises, licenses,
certificates and other authorizations from such federal, state or local government or governmental
agency, department or body that are currently necessary for the operation of the business of the
Company as currently conducted, except where the failure to possess currently such franchises,
licenses, certificates and other authorizations is not reasonably expected to have a Material
Adverse Effect. Neither the Company nor any Subsidiary has received any notice of proceedings
relating to the revocation or modification of any such permit that, if the subject of an
unfavorable decision, ruling or finding, could reasonably be expected to have a Material Adverse
Effect.

     (y) Financial Statements. The consolidated financial statements of the Company and the
related notes and schedules thereto included in its Exchange Act filings fairly present the
financial position, results of operations, stockholders’ equity and cash flows of the Company and
its consolidated Subsidiaries at the dates and for the periods specified therein. Such financial
statements and the related notes and schedules thereto have been prepared in accordance with
generally accepted accounting principles consistently applied throughout the periods involved
(except as otherwise noted therein) and all adjustments necessary for a fair presentation of
results for such periods have been made; provided, however, that the unaudited
financial statements are subject to normal year-end audit adjustments (which are not expected to be
material) and do not contain all footnotes required under generally accepted accounting principles.

15

 

     (z) Listing Compliance. The Company is in compliance with the requirements of the NASDAQ
Global Market for continued listing of the Common Stock thereon. The Company has taken no action
designed to, or likely to have the effect of, terminating the registration of the Common Stock
under the Exchange Act or the listing of the Common Stock on the NASDAQ Global Market, nor has the
Company received any notification that the Commission or the NASDAQ Global Market is contemplating
terminating such registration or listing. The transactions contemplated by this Agreement will not
contravene the rules and regulations of the NASDAQ Global Market. The Company will comply with all
requirements of the NASDAQ Global Market with respect to the issuance of the New Shares and shall
cause the New Shares to be listed on the NASDAQ Global Market and listed on any other exchange on
which the Company’s common stock is listed on or before the Closing Date.

     (aa) Internal Accounting Controls. The Company maintains a system of internal accounting
controls sufficient to provide reasonable assurances that (i) transactions are executed in
accordance with management’s general or specific authorization; (ii) transactions are recorded as
necessary to permit preparation of financial statements in conformity with generally accepted
accounting principles and to maintain accountability for assets; (iii) access to assets is
permitted only in accordance with management’s general or specific authorization; and (iv) the
recorded accountability for assets is compared with existing assets at reasonable intervals and
appropriate action is taken with respect to any differences. The Company has disclosure controls
and procedures (as defined in Rules 13a-14 and 15d-14 under the Exchange Act) that are designed to
ensure that material information relating to the Company is made known to the Company’s principal
executive officer and the Company’s principal financial officer or persons performing similar
functions. The Company is otherwise in compliance in all material respects with all applicable
provisions of the Sarbanes-Oxley Act of 2002, as amended and the rules and regulations promulgated
thereunder.

     (bb) Foreign Corrupt Practices. Neither the Company, nor any Subsidiary, nor, to the
knowledge of the Company, any director, officer, agent, employee or other Person acting on behalf
of the Company or any Subsidiary has, in the course of its actions for, or on behalf of, the
Company (i) used any corporate funds for any unlawful contribution, gift, entertainment or other
unlawful expenses relating to political activity; (ii) made any direct or indirect unlawful payment
to any foreign or domestic government official or candidate for any federal, state or foreign
office in violation of any law; (iii) violated or is in violation of any provision of the U.S.
Foreign Corrupt Practices Act of 1977, as amended; or (iv) made any unlawful bribe, rebate, payoff,
influence payment, kickback or other unlawful payment to any foreign or domestic government
official or employee.

     (cc) Employee Relations. Neither the Company nor any Subsidiary is a party to any collective
bargaining agreement or employs any member of a union. The Company and each Subsidiary believe
that their relations with their employees are good. The Company is not engaged in any unfair labor
practice except for matters which would not, individually or in the aggregate, have a Material
Adverse Effect, (i) there is (A) no unfair labor practice complaint pending or, to the Company’s
knowledge, threatened against the Company before the National Labor Relations Board, and no
grievance or arbitration proceeding arising out of or under collective bargaining agreements is
pending or threatened, (B) no strike, labor dispute, slowdown or stoppage pending or, to the
Company’s knowledge, threatened against the Company and

16

 

(C) no union representation dispute currently existing concerning the employees of the Company,
and (ii) to the Company’s knowledge, (A) no union organizing activities are currently taking place
concerning the employees of the Company and (B) there has been no violation of any federal, state,
local or foreign law relating to discrimination in the hiring, promotion or pay of employees or any
applicable wage or hour laws. No executive officer of the Company (as defined in Rule 501(f)
promulgated under the Securities Act) has notified the Company that such officer intends to leave
the Company or otherwise terminate such officer’s employment with the Company. No executive
officer of the Company, to the knowledge of the Company, is, or is now expected to be, in violation
of any material term of any employment contract, confidentiality, disclosure or proprietary
information agreement, non-competition agreement, or any other agreement or any restrictive
covenant, and the continued employment of each such executive officer does not subject the Company
or any Subsidiary to any liability with respect to any of the foregoing matters.

     (dd) Environmental Matters. The Company and its properties, assets and operations is and has
been in compliance with, and holds all permits, authorizations and approvals required under,
Environmental Laws (as defined below), except to the extent that failure to so comply or to hold
such permits, authorizations or approvals would not, individually or in the aggregate, have a
Material Adverse Effect; there are no past, present or, to the Company’s knowledge, reasonably
anticipated future events, conditions, circumstances, activities, practices, actions, omissions or
plans that could reasonably be expected to, individually or in the aggregate, have a Material
Adverse Effect or to interfere with or prevent material compliance by the Company with
Environmental Laws; except as would not, individually or in the aggregate, have a Material Adverse
Effect, the Company (i) to the Company’s knowledge is not the subject of any investigation, (ii)
has not received any notice or claim, (iii) is not a party to or affected by any pending or to the
Company’s knowledge threatened action, suit or proceeding, nor, to the best of the Company’s
knowledge, is there any basis for any such suit or proceeding, (iv) is not bound by any judgment,
decree or order, (v) has not entered into any agreement, in each case relating to any alleged
violation of any Environmental Law or any actual or alleged release or threatened release or
cleanup at any location of any Hazardous Materials (as defined below), (vi) has not arranged for
the disposal of any Hazardous Material at, or transported any Hazardous Material to, any site for
which the Company is or may be liable except by a licensed contractor in accordance with applicable
laws, (vii) is not bound by any lien, nor is any lien reasonably expected to be recorded on the
property or (viii) to the Company’s knowledge, it does not currently own or lease or has not
previously owned or leased any property that contains or contained or includes or included any
asbestos, polychlorinated biphenyls, or any underground storage tanks, piping, or sumps (or other
underground structures) which contain or contained Hazardous Materials or contains or contained any
environmental conditions (other than resulting from the fact that the property is located on a
cemetery), including, without limitation, any wetlands or endangered species, that will impede use
or redevelopment of such property (as used herein, “Environmental Law” means any federal,
state, local or foreign law, statute, ordinance, rule, regulation, order, decree, judgment,
injunction, permit, license, authorization or other binding requirement, or common law, relating to
health, safety or the protection, cleanup or restoration of the environment or natural resources,
including but not limited to those relating to the distribution, processing, generation, treatment,
storage, disposal, transportation, other handling or release or threatened release of Hazardous
Materials, and “Hazardous Materials” means any material (including, without limitation,
pollutants, contaminants, hazardous or toxic

17

 

substances, wastes, asbestos, silica, mixed dust, bacteria, mold or fungi) that is regulated
by or may give rise to liability under any Environmental Law); other than as set forth on
Schedule 5(dd), there have been no environmental studies, investigations, reports
or assessments concerning the Company or any currently or previously owned or leased properties
within its possession or control.

     (ee) Money Laundering Laws. The operations of the Company and the Subsidiaries are and have
been conducted at all times in compliance with applicable financial record-keeping and reporting
requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, applicable
money laundering statutes and applicable rules and regulations thereunder (collectively, the
“Money Laundering Laws”), and no action, suit or proceeding by or before any court or
governmental agency, authority or body or any arbitrator involving the Company or any Subsidiary
with respect to the Money Laundering Laws is pending or, to the Company’s knowledge, threatened.

     (ff) OFAC. Neither the Company nor, to the Company’s knowledge, any director, officer, agent,
employee or affiliate of the Company is currently subject to any U.S. sanctions administered by the
Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”); and the Company
will not directly or indirectly use the proceeds of the offering, or lend, contribute or otherwise
make available such proceeds to any subsidiary, joint venture partner or other person or entity,
for the purpose of financing the activities of any person currently subject to any U.S. sanctions
administered by OFAC.

     (gg) ERISA. The Company and each Subsidiary is in compliance in all material respects with
all presently applicable provisions of the Employee Retirement Income Security Act of 1974, as
amended, including the regulations and published interpretations thereunder (“ERISA”);
neither the Company nor any Subsidiary has ever maintained any “defined benefit plan” (as defined
in Section 3(35) of ERISA).

     (hh) Integration; Other Issuances of Shares. Neither the Company nor its subsidiaries or any
affiliates, nor any Person acting on its or their behalf, has issued any shares of Common Stock or
shares of any series of preferred stock or other securities or instruments convertible into,
exchangeable for or otherwise entitling the holder thereof to acquire shares of Common Stock which
would be integrated with the sale of the Shares to the Purchaser for purposes of the Securities Act
or of any applicable stockholder approval provisions, including, without limitation, under the
rules and regulations of any exchange or automated quotation system on which any of the securities
of the Company are listed or designated, nor will the Company or its subsidiaries or affiliates
take any action or steps that would require registration of any of the Shares under the Securities
Act or cause the offering of the Shares to be integrated with other offerings. Assuming the
accuracy of the representations and warranties of the Purchaser, the offer and sale of the Shares
by the Company to the Purchaser pursuant to this Agreement will be exempt from the registration
requirements of the Securities Act.

     (ii) No General Solicitation. Neither the Company nor, to the Company’s knowledge, any person
acting on behalf of the Company has offered or sold any of the Shares by any form of general
solicitation or general advertising.

18

 

     (jj) Acknowledgment Regarding Purchaser’s Purchase of Shares. The Company acknowledges and
agrees that the Purchaser is acting solely in the capacity of an arm’s length purchaser with
respect to the Transaction Documents and the transactions contemplated hereby and thereby. The
Company further acknowledges that the Purchaser is not acting as a financial advisor or fiduciary
of the Company (or in any similar capacity) with respect to the Transaction Documents and the
transactions contemplated thereby and any advice given by the Purchaser or any of its respective
representatives or agents in connection with the Transaction Documents and the transactions
contemplated thereby is merely incidental to the Purchaser’s purchase of the Shares. The Company
further represents to the Purchaser that the Company’s decision to enter into this Agreement and
the other Transaction Documents has been based solely on the independent evaluation of the
transactions contemplated hereby by the Company and its representatives.

     (kk) No Additional Agreements. The Company does not have any agreement or understanding with
the Purchaser with respect to the transactions contemplated by the Transaction Documents other than
as specified in the Transaction Documents.

     (ll) No Brokers’ Fees. The Company has not incurred any liability for any finder’s or
broker’s fee or agent’s commission in connection with the execution and delivery of this Agreement
or the consummation of the transactions contemplated hereby.

     (mm) Clinical Trials. The preclinical tests, clinical trials and other studies, tests and
research conducted by or on behalf of or sponsored by the Company that are described in, or the
results of which are referred to in, the SEC Reports were and, if still pending, are to the
Company’s knowledge being conducted in all material respects in accordance with protocols filed
with the appropriate regulatory authorities for each such test or trial and in accordance with all
statutes, laws, rules and regulations, as the case may be, and with standard medical and scientific
research procedures except where such failure to comply would not have a Material Adverse Effect;
the Company has not received any notices or other correspondence from the FDA or any committee
thereof or from any other U.S. or foreign government or drug or medical device regulatory agency
requiring the termination or suspension of any product or clinical trials that are described or
referred to in the SEC Reports; the Company has not notified the FDA of any “unanticipated adverse
device effects” as defined in 21 CFR 812.3(s) with respect to any product, clinical or pre-clinical
studies, tests or research that are described in the SEC Reports or the results of which are
referred to in the SEC Reports, and the Company has operated and currently is in compliance in all
material respects with all applicable rules and regulations of the FDA and comparable foreign drug
or medical device regulatory agencies outside of the United States except where such failure to
comply would not have a Material Adverse Effect.

     Section 6. Covenants of the Company.

     (a) Until the Closing Date or the earlier termination of the Standby Purchaser’s obligations
under Section 2 of this Agreement, the Company covenants and agrees as follows:

          (i) As contemplated by Section 203 of the DGCL, to use commercially reasonable efforts to have
the Board recommend to the stockholders of the Company to approve the sale of the New Shares to the
Standby Purchaser;

19

 

          (ii) To as soon as reasonably practicable (A) seek the Company Stockholder Approval and (B)
file with the Commission the Rights Offering Registration Statement and the Proxy Statement and pay
the applicable fees in accordance with the Securities Act;

          (iii) To use commercially reasonable efforts to cause the Rights Offering Registration
Statement, and any amendments thereto to become effective as promptly as possible, and to cause the
Proxy Statement to be cleared by the Commission as promptly and practicable;

          (iv) To use commercially reasonable efforts to effectuate the Rights Offering;

          (v) As soon as reasonably practicable after the Company is advised or obtains knowledge
thereof, to advise the Standby Purchaser with a confirmation in writing, of (A) the time when the
Rights Offering Registration Statement, or any amendments thereto has been filed or declared
effective or the Prospectus or any amendment or supplement thereto has been filed, (B) the issuance
by the Commission of any stop order, or of the initiation or threatening of any order preventing or
suspending the use of any preliminary prospectus or the Prospectus or any amendment or supplement
thereto, (C) the issuance by any state securities commission of any notice of any proceedings for
the suspension of the qualification of the New Shares for offering or sale in any jurisdiction or
of the initiation, or the threatening, of any proceeding for that purpose, (D) the receipt of any
comments from the Commission, and (E) any request by the Commission for any amendment to the Rights
Offering Registration Statement, any amendment or supplement to the Prospectus or for additional
information. The Company will use its commercially reasonable efforts to prevent the issuance of
any such order or the imposition of any such suspension and, if any such order is issued or
suspension is imposed, to obtain the withdrawal thereof as promptly as possible;

          (vi) To notify, or to cause the subscription agent for the Rights Offering (the
“Subscription Agent”) to notify the Standby Purchaser, on each Friday during the exercise
period of the Rights, or more frequently if reasonably requested by the Standby Purchaser, of the
aggregate number of Rights known by the Company or the Subscription Agent to have been exercised
pursuant to the Rights Offering as of the close of business on the preceding Business Day or the
most recent practicable time before such request, as the case may be;

          (vii) Not to issue any shares of capital stock of the Company, or options, warrants, purchase
rights, subscription rights, conversion rights, exchange rights, securities convertible into or
exchangeable for capital stock of the Company, or other agreements or rights to purchase or
otherwise acquire capital stock of the Company, except for (A) shares of Common Stock issuable upon
exercise of the Company’s presently outstanding stock options, (B) new stock options and other
awards granted to employees of the Company after the date hereof under the Company’s incentive
plans; (C) to InterWest Partners pursuant to that certain Purchase Agreement by and between the
Company and InterWest Partners dated as of April 3, 2009 (the “InterWest Purchase
Agreement”) and (D) pursuant to the Rights Offering;

          (viii) Not to authorize any stock split, stock dividend, stock combination or similar
transaction affecting the number of issued and outstanding shares of Common Stock;

20

 

          (ix) Not to declare or pay any dividends on its Common Stock or repurchase any shares of
Common Stock, other than ordinary quarterly dividends, regularly declared and paid in accordance
with past practice;

          (x) Not to incur any indebtedness or guarantees thereof, other than borrowings in the ordinary
course of business and consistent with past practice; and

          (xi) On or before the Closing Date, to deliver to the Standby Purchaser a copy of the
Prospectus and any “issuer free writing prospectus” as defined in Rule 433 of the Securities Act
relating to the New Shares that (A) is required to be filed with the Commission by the Company, or
(B) is exempt from filing pursuant to Rule 433(d)(5)(i) because it contains a description of the
terms of the New Shares or the offering of the New Shares that does not reflect the final terms,
and to give the Standby Purchaser the opportunity to review and comment on any disclosure in the
Prospectus and any “issuer free writing prospectus” relating to the Standby Purchaser.

     (b) Post-Closing Covenants. The Company agrees and covenants as follows:

     (i) To, within 30 days after the Closing Date, prepare and file the Shelf Registration
Statement, which registration statement shall contain (except if otherwise required pursuant to
written comments received from the Commission upon a review of such Registration Statement) a plan
of distribution substantially similar to the “Plan of Distribution” section attached hereto as
Exhibit C (which may be modified to respond to comments, if any, provided by the
Commission);

     (ii) use its best efforts, subject to receipt of necessary information from the Standby
Purchaser, to cause the Commission to declare the Shelf Registration Statement effective not later
than September 30, 2009;

     (iii) To promptly prepare and file with the Commission such amendments and supplements to the
Shelf Registration Statement and the prospectus used in connection therewith as may be necessary to
keep the Shelf Registration Statement effective until the earlier of (A) three years from the
effective date thereof, and (B) such time as the New Shares become eligible for resale by the
Standby Purchaser without any volume limitations or other restrictions pursuant to Rule 144 under
the Securities Act or any other rule of similar effect; provided that, for the avoidance of doubt,
in no event shall the Company have any obligation to keep the Shelf Registration Statement
effective after such time as all of the Shares have been sold pursuant to the Registration
Statement or Rule 144;

     (iv) To deliver to the Standby Purchaser a copy of the prospectus used in connection with the
Shelf Registration Statement and to give the Standby Purchaser the opportunity to review and
comment on any disclosure in the prospectus relating to the Standby Purchaser;

     (v) To take all action reasonably necessary to maintain the listing of the New Shares on the
NASDAQ Global Market;

21

 

     (vi) To furnish to the Standby Purchaser with respect to the Shares registered under the Shelf
Registration Statement (and to each underwriter, if any, of such Registrable Securities) such
number of copies of prospectuses and such other documents as the Standby Purchaser may reasonably
request, in order to facilitate the public sale or other disposition of all or any of the Share by
the Standby Purchaser;

     (vii) To all file documents required of the Company for normal Blue Sky clearance in states
specified in writing by the Standby Purchaser; provided, however, that the Company
shall not be required to qualify to do business or consent to service of process in any
jurisdiction in which it is not now so qualified or has not so consented;

     (viii) To bear all expenses in connection with the procedures in paragraphs (i) through (vii)
of this Section 6.1(b) and the registration of the Shares pursuant to the Shelf Registration
Statement, other than fees and expenses, if any, of counsel or other advisers to the Standby
Purchaser or underwriting discounts, brokerage fees and commissions incurred by the Standby
Purchaser, if any, in connection with the offering of the Shares pursuant to the Shelf Registration
Statement; and

     (ix) in order to enable the Standby Purchaser to sell the Shares under Rule 144 under the
Securities Act, for a period of three years from Closing, use best efforts to comply with the
requirements of Rule 144, including without limitation, its best efforts to comply with the
requirements of Rule 144(c)(1) with respect to public information about the Company and to timely
file all reports required to be filed by the Company under the Exchange Act.

The Company understands that the Standby Purchaser disclaims being an underwriter, but the Standby
Purchaser being deemed an underwriter shall not relieve the Company of any obligations it has
hereunder. A draft of the proposed form of the questionnaire related to the Shelf Registration
Statement to be completed by the Standby Purchaser is attached hereto as Appendix I.

     Section 7. Restrictions on Transfer.

     (a) Restrictions on Transfer. The Standby Purchaser shall not, and shall ensure that its
affiliates do not, purchase, sell, transfer, assign, convey, gift, mortgage, pledge, encumber,
hypothecate or otherwise dispose of, directly or indirectly (“Transfer”), any New Shares
purchased in the Standby Purchase Commitment; provided, however, that the foregoing
shall not restrict in any manner a Transfer (i) by the Standby Purchaser (x) to one or more of its
Affiliates or (y) by a partnership to a partner of such partnership or a retired partner of such
partnership or to the estate of any such partner or retired partner, or by a limited liability
company to a member of such limited liability company or a retired member or to the estate of any
such member or retired member, provided that the transferee in each case agrees in writing to be
subject to the terms of this Section 7(a), or (ii) by a Standby Purchaser to any other person in a
private transaction if the Company first shall have been furnished with an opinion of legal
counsel, reasonably satisfactory to the Company, to the effect that such Transfer is exempt from
the registration requirements of the Securities Act or (iii) made in accordance with Rule 144 under
the Securities Act; provided, that the Company shall have the right to receive an opinion
of legal

22

 

counsel for the Standby Purchaser, reasonably satisfactory to the Company, to the effect
that
such Transfer is exempt from the registration requirements of the Securities Act, prior to the
removal of the legend subject to Rule 144 or (iv) made pursuant to a registration statement
declared effective by the Commission. Any purported Transfers of New Shares purchased in the
Standby Purchase Commitment in violation of this Section 7 shall be null and void and no right,
title or interest in or to such New Shares purchased in the Standby Purchase Commitment shall be
transferred to the purported transferee, buyer, donee, assignee or encumbrance holder. The Company
will not give, and will not permit the Company’s transfer agent to give, any effect to such
purported Transfer in its stock records.

     (b) Compliance with Laws; Stop Order. The Standby Purchaser shall, and shall ensure that
their respective affiliates shall, observe and comply with the Securities Act and the Exchange Act
and the regulations promulgated thereunder and all other requirements of applicable laws in
connection with any permitted Transfer of the New Shares purchased in the Standby Purchase
Commitment, including all requirements of applicable laws relating to the use of insider
information or the trading of securities while in the possession of nonpublic information.

     (c) Restrictive Legends. The Standby Purchaser understands and agrees that the New Shares
purchased in the Standby Purchase Commitment will bear a legend substantially similar to the legend
set forth below in addition to any other legend that may be required by applicable law or by any
agreement between the Company and the Standby Purchaser:

“THE SHARES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR THE SECURITIES LAWS OF
ANY STATE OR OTHER JURISDICTION. THE SHARES MAY NOT BE OFFERED, SOLD, PLEDGED OR
OTHERWISE TRANSFERRED EXCEPT (1) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT OR (2) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE STATE SECURITIES LAWS
AND THE SECURITIES LAWS OF OTHER JURISDICTIONS, AND IN THE CASE OF A TRANSACTION
EXEMPT FROM REGISTRATION, UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL
REASONABLY SATISFACTORY TO IT THAT SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION
UNDER THE SECURITIES ACT AND SUCH OTHER APPLICABLE LAWS.”

     (d) Waiver of Registration Rights. The Standby Purchaser hereby waives, under the Second
Amended and Restated Information and Registration Rights Agreement, dated as of October 21, 2004,
as amended (the “Registration Rights Agreement”), by and among the Company, the Standby
Purchaser and the other parties named therein, any demand, piggyback or other registration rights
to which the Standby Purchaser may be entitled and waives any and all notice requirements under the
Registration Rights Agreement in connection with the Rights Offering and, except as expressly set
forth herein, in connection with the Rights Offering Registration Statement, the Shelf Registration
Statement and any other resale registration statement filed by the Company in connection with the
Rights Offering.

23

 

     Section 8. Conditions Precedent.

     (a) Conditions of the Standby Purchaser’s Obligations. The obligations of the Standby
Purchaser under this Agreement are subject to the performance by the Company on and as of the
Closing Date of its covenants and agreements hereunder, and the following additional conditions:

          (i) the Rights Offering relating to the Common Stock shall have been completed by the Company
in accordance with the provisions of Section 2 and allocations of shares shall have been made
thereunder;

          (ii) the Company shall have closed on the sale of Common Stock to InterWest Partners for gross
proceeds equal to approximately $8,000,000 pursuant to the InterWest Purchase Agreement for the
same price per share and the same terms and conditions as this Agreement;

          (iii) the Company shall have delivered to the Standby Purchaser the Standby Purchase
Commitment allocated hereunder to the Standby Purchaser following the close of the Offering Period;
and

          (iv) all conditions precedent to performance by the Company of its obligations under this
Agreement shall have been satisfied or waived.

          (b) Conditions of the Company’s Obligations. The obligations of the Company under this
Agreement are subject to the performance by the Standby Purchaser on and as of the Closing Date of
its covenants and agreements hereunder, and the following additional conditions:

          (i) the representations and warranties of the Standby Purchaser contained in this Agreement
shall be true and correct;

          (ii) all conditions precedent contained in this Agreement to be performed by the Company shall
have been performed and complied with in all material respects by the Company; and

          (iii) the Standby Purchaser shall have delivered to the Company the Standby Purchase
Commitment Price for the Standby Purchase Commitment allocated hereunder to the Standby Purchaser
following the close of the Offering Period, if any.

     (c) Conditions of the Standby Purchaser and the Company’s Obligations. The obligations of the
Standby Purchaser and the Company under this Agreement are subject to the following conditions:

24

 

          (i) the Rights Offering Registration Statement shall have become effective and no stop order
suspending the effectiveness thereof shall be in effect and no proceedings therefor shall be
pending or threatened by the Commission; and

          (ii) having obtained Company Stockholder Approval.

     (d) In case any of the conditions specified in this Section 8 shall not be fulfilled, this
Agreement may be terminated by either party by giving notice to the other party. Any such
termination shall be without liability of the Standby Purchaser to the Company and without
liability of the Company to the Standby Purchaser.

     Section 9. Termination.

     (a) Termination. This Agreement may be terminated at any time prior to the Closing Date:

          (i) by mutual written agreement of the Company and the Standby Purchaser; or

          (ii) by either the Company or the Standby Purchaser at any time after June 30, 2009 if the
Closing has not occurred by such time other than because of a breach of any covenant or agreement
on the part of such party set forth in this Agreement or because any representation or warranty of
such party set forth in this Agreement shall not be true and correct.

     (b) Effect of Termination. If this Agreement is terminated by either the Company or the
Standby Purchaser pursuant to the provisions of this Section 9, this Agreement shall forthwith
become void and there shall be no further obligations on the part of the Company or the Standby
Purchaser, except for the provisions of Sections 9, 10 and 11, which shall survive any termination
of this Agreement; provided, that nothing in this Section 9(b) shall relieve any party from
liability for any willful breach of this Agreement.

     Section 10. Indemnification.

     For the purpose of this Section 10 the term “Standby Purchaser/Affiliate” shall mean
any affiliate of the Standby Purchaser, including a transferee who is an affiliate of the Standby
Purchaser, and any person who controls the Standby Purchaser or any affiliate of the Purchaser
within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act.

          (a) Indemnification by the Company. The Company agrees to indemnify and hold harmless the
Standby Purchaser and each Standby Purchaser/Affiliate, against any losses, claims, damages,
liabilities or expenses, joint or several, to which the Standby Purchaser or Standby
Purchaser/Affiliates may become subject, under the Securities Act, the Exchange Act, or any other
federal or state statutory law or regulation, or at common law or otherwise (including in
settlement of any litigation, if such settlement is effected with the written consent of the
Company), insofar as such losses, claims, damages, liabilities or expenses (or actions in respect
thereof as contemplated below) arise out of or are based upon (i) any untrue statement or alleged
untrue statement of any material fact contained in the Shelf Registration Statement,

25

 

including the
Shelf Prospectus, financial statements and schedules, and all other documents filed as a part
thereof, as amended at the time of effectiveness of the Shelf Registration Statement, including any
information deemed to be a part thereof as of the time of effectiveness pursuant to paragraph (b)
of Rule 430A, or pursuant to Rules 430B, 430C or 434, of the Rules and Regulations, or the Shelf
Prospectus, in the form first filed with the Commission pursuant to Rule 424(b) of the Regulations,
or filed as part of the Shelf Registration Statement at the time of
effectiveness if no Rule 424(b) filing is required or any amendment or supplement thereto,
(ii) the omission or alleged omission to state in any of the foregoing of a material fact required
to be stated therein or necessary to make the statements in the Shelf Registration Statement or any
amendment or supplement thereto not misleading or in the Shelf Prospectus or any amendment or
supplement thereto not misleading in light of the circumstances under which they were made, (iii)
any breach of a representation or warranty or breach of or failure to perform any covenant or
agreement on the part of the Company contained in this Agreement, or any other agreement or
instrument furnished by the Company to the Standby Purchaser pursuant to this Agreement or (iv)
third party claims or demands relating to the fact that the Standby Purchaser is a party to this
Agreement; and the Company will promptly reimburse the Standby Purchaser and each Standby
Purchaser/Affiliate for any legal and other expenses as such expenses are reasonably incurred by
the Standby Purchaser or such Standby Purchaser/Affiliate in connection with investigating,
defending or preparing to defend, settling, compromising or paying any such loss, claim, damage,
liability, expense or action; provided, however, that the Company will not be
liable for amounts paid in settlement of any such loss, claim, damage, liability or action if such
settlement is effected without the consent of the Company, which consent shall not be unreasonably
withheld, and the Company will not be liable in any such case to the extent that any such loss,
claim, damage, liability or expense arises out of or is based upon (i) an untrue statement or
alleged untrue statement or omission or alleged omission made in the Shelf Registration Statement,
the Shelf Prospectus or any amendment or supplement thereto in reliance upon and in conformity with
written information furnished to the Company by or on behalf of the Standby Purchaser expressly for
use therein, or (ii) the failure of the Standby Purchaser to comply with the covenants and
agreements contained in this Agreement with respect to the sale of the Shares, or (iii) the
inaccuracy of any representation or warranty made by the Standby Purchaser herein or (iv) any
statement or omission in any Shelf Prospectus that is corrected in any subsequent Shelf Prospectus
that was delivered to the Standby Purchaser prior to the pertinent sale or sales by the Standby
Purchaser or (v) the gross negligence or willful misconduct of the Standby Purchaser or any of its
Affiliates.

          (b) Indemnification by the Purchaser. The Standby Purchaser will indemnify and hold harmless
the Company, each of its directors, each of its officers who signed the Shelf Registration
Statement and each person, if any, who controls the Company within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act, against any losses, claims, damages, liabilities
or expenses to which the Company, each of its directors, each of its officers who signed the Shelf
Registration Statement or controlling person may become subject, under the Securities Act, the
Exchange Act, or any other federal or state statutory law or regulation, or at common law or
otherwise (including in settlement of any litigation, but only if such settlement is effected with
the written consent of the Purchaser) insofar as such losses, claims, damages, liabilities or
expenses (or actions in respect thereof as contemplated below) arise out of or are based upon (i)
any breach of a representation or warranty or breach of or failure to perform any covenant or
agreement on the part of the Standby Purchaser contained in

26

 

this Agreement, or any other agreement
or instrument furnished by the Company to the Standby Purchaser pursuant to this Agreement, (ii)
any failure to comply with the covenants and agreements contained in this Agreement with respect to
the sale of the Shares or (iii) any untrue or alleged untrue statement of any material fact
contained in the Shelf Registration Statement, the Shelf Prospectus, or any amendment or supplement
thereto or any omission or alleged omission to state therein a material fact required to be stated
therein or necessary to make the
statements in the Shelf Registration Statement or any amendment or supplement thereto not
misleading or in the Shelf Prospectus or any amendment or supplement thereto not misleading in the
light of the circumstances under which they were made, in each case to the extent, but only to the
extent, that such untrue statement or alleged untrue statement or omission or alleged omission was
made in the Shelf Registration Statement, the Shelf Prospectus, or any amendment or supplement
thereto, in reliance upon and in conformity with written information furnished to the Company by or
on behalf of the Standby Purchaser expressly for use therein; and the Standby Purchaser will
reimburse the Company, each of its directors, each of its officers who signed the Shelf
Registration Statement or controlling person for any legal and other expense reasonably incurred by
the Company, each of its directors, each of its officers who signed the Shelf Registration
Statement or controlling person in connection with investigating, defending, settling, compromising
or paying any such loss, claim, damage, liability, expense or action; provided,
however, that (i) the Standby Purchaser’s aggregate liability under this Section 10(b)
shall not exceed the amount of proceeds received by the Standby Purchaser on the sale of the Shares
pursuant to the Shelf Registration Statement and (ii) the Standby Purchaser will not be required to
indemnify the Company to the extent that the liabilities arise from the gross negligence or willful
misconduct of the Company or any of its affiliates.

          (c) Indemnification Procedures. Promptly after receipt by an indemnified party under this
Section 10 of notice of the threat or commencement of any action, such indemnified party will, if a
claim in respect thereof is to be made against an indemnifying party under this Section 10 promptly
notify the indemnifying party in writing thereof, but the omission to notify the indemnifying party
will not relieve it from any liability that it may have to any indemnified party for contribution
or otherwise under the indemnity agreement contained in this Section 10 to the extent it is not
prejudiced as a result of such failure. In case any such action is brought against any indemnified
party and such indemnified party seeks or intends to seek indemnity from an indemnifying party, the
indemnifying party will be entitled to participate in, and, to the extent that it may wish, jointly
with all other indemnifying parties similarly notified, to assume the defense thereof with counsel
reasonably satisfactory to such indemnified party; provided, however, if the
defendants in any such action include both the indemnified party, and the indemnifying party and
the indemnified party shall have reasonably concluded, based on an opinion of counsel reasonably
satisfactory to the indemnifying party, that there may be a conflict of interest between the
positions of the indemnifying party and the indemnified party in conducting the defense of any such
action or that there may be legal defenses available to it and/or other indemnified parties that
are different from or additional to those available to the indemnifying party, the indemnified
party or parties shall have the right to select separate counsel to assume such legal defenses and
to otherwise participate in the defense of such action on behalf of such indemnified party or
parties. Upon receipt of notice from the indemnifying party to such indemnified party of its
election to assume the defense of such action and approval by the indemnified party of counsel, the
indemnifying party will not be liable to such indemnified party under this Section 10 for any legal
or other expenses subsequently incurred by

27

 

such indemnified party in connection with the defense
thereof unless (i) the indemnified party shall have employed such counsel in connection with the
assumption of legal defenses in accordance with the proviso to the preceding sentence (it being
understood, however, that the indemnifying party shall not be liable for the expenses of more than
one separate counsel, reasonably satisfactory to such indemnifying party, representing all of the
indemnified parties who are parties to such action) or (ii) the indemnifying party shall not have
employed counsel
reasonably satisfactory to the indemnified party to represent the indemnified party within a
reasonable time after notice of commencement of action, in each of which cases the reasonable fees
and expenses of counsel shall be at the expense of the indemnifying party. The indemnifying party
shall not be liable for any settlement of any action without its written consent. In no event
shall any indemnifying party be liable in respect of any amounts paid in settlement of any action
unless the indemnifying party shall have approved in writing the terms of such settlement;
provided, that such consent shall not be unreasonably withheld. No indemnifying party
shall, without the prior written consent of the indemnified party, effect any settlement of any
pending or threatened proceeding in respect of which any indemnified party is or could have been a
party and indemnification could have been sought hereunder by such indemnified party from all
liability on claims that are the subject matter of such proceeding.

          (d) Contribution. If the indemnification provided for in this Section 10 is required by its
terms but is for any reason held to be unavailable to or otherwise insufficient to hold harmless an
indemnified party under paragraphs (a), (b) or (c) of this Section 10 in respect to any losses,
claims, damages, liabilities or expenses referred to herein, then each applicable indemnifying
party shall contribute to the amount paid or payable by the indemnified party as a result of any
losses, claims, damages, liabilities or expenses referred to herein (i) in such proportion as is
appropriate to reflect the relative benefits received by the Company and the Standby Purchaser from
the sale of the Shares hereunder or (ii) if the allocation provided by clause (i) above is not
permitted by applicable law, in such proportion as is appropriate to reflect not only the relative
benefits referred to in clause (i) above but the relative fault of the Company and the Standby
Purchaser in connection with the statements or omissions or inaccuracies in the representations and
warranties in this Agreement and/or the Shelf Registration Statement that resulted in such losses,
claims, damages, liabilities or expenses, as well as any other relevant equitable considerations.
The relative benefits received by the Company on the one hand and the Standby Purchaser on the
other shall be deemed to be in the same proportion as the amount paid by the Standby Purchaser to
the Company pursuant to this Agreement for the Shares purchased by the Standby Purchaser that were
sold pursuant to the Shelf Registration Statement bears to the difference (the
“Difference”) between the amount the Standby Purchaser paid for the Shares that were sold
pursuant to the Shelf Registration Statement and the amount received by the Standby Purchaser from
such sale. The relative fault of the Company on the one hand and the Standby Purchaser on the
other shall be determined by reference to, among other things, whether the untrue or alleged
statement of a material fact or the omission or alleged omission to state a material fact or the
inaccurate or the alleged inaccurate representation and/or warranty relates to information supplied
by the Company or by the Standby Purchaser and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission. The amount paid or
payable by a party as a result of the losses, claims, damages, liabilities and expenses referred to
above shall be deemed to include, subject to the limitations set forth in paragraph (c) of this
Section 10, any legal or other fees or expenses reasonably incurred by such party in connection
with investigating or defending any action or claim. The provisions

28

 

set forth in paragraph (c) of
this Section 10 with respect to the notice of the threat or commencement of any threat or action
shall apply if a claim for contribution is to be made under this paragraph (d); provided,
however, that no additional notice shall be required with respect to any threat or action
for which notice has been given under paragraph (c) for purposes of indemnification. The Company
and the Standby Purchaser agree that it would not be just and equitable if contribution pursuant to
this Section 10 were determined solely by pro rata allocation
(even if the Standby Purchaser were treated as one entity for such purpose) or by any other
method of allocation which does not take account of the equitable considerations referred to in
this paragraph. Notwithstanding the provisions of this Section 10, the Standby Purchaser shall not
be required to contribute any amount in excess of the amount by which the Difference exceeds the
amount of any damages that the Standby Purchaser has otherwise been required to pay by reason of
such untrue or alleged untrue statement or omission or alleged omission. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be
entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.

     Section 11. Miscellaneous.

     (a) Attorney’s Fees. Upon the Closing or earlier termination of the Standby Purchaser’s
obligations under Section 2 of this Agreement, the Company will reimburse the Standby Purchaser for
all of its attorney’s fees up to $20,000 incurred by the Standby Purchaser in connection with this
Agreement and the purchase of the Standby Purchase Commitment, upon the Company’s receipt of all
reasonably requested documentation to support the incurrence by the Standby Purchaser of such
expense.

     (b) Amendments. The provisions of this Agreement may not be amended or waived, except that
the Standby Purchase Commitment and the Standby Purchase Commitment Price may be modified in
writing by the Company and the Standby Purchaser at any time prior to the Closing Date.

     (c) Notices. All notices, requests, consents and other communications hereunder shall be in
writing, shall be mailed first-class registered or certified airmail, e-mail, confirmed facsimile
or nationally recognized overnight express courier postage prepaid, and shall be deemed given when
so mailed and shall be delivered as addressed as follows:

     If to the Company to:

BioMimetic Therapeutics, Inc.

389 Nichol Mill Lane

Franklin, Tennessee 37067

Attention: General Counsel

Facsimile: 615-844-1281

29

 

     With a copy to:

Morrison & Foerster LLP

1290 Avenue of the Americas

New York, New York 10104-0050

Attention: Anna T. Pinedo, Esq.

Facsimile: 212-469-7900

     If to the Standby Purchaser to:

Novo A/S

Krogshøjvej 41

DK-2880 Bagsvaerd

Denmark

Attention: Thorkil Kastberg Christensen

Facsimile: +45-4442-4430

     With a copy to:

Faber Daeufer & Rosenberg PC

110 East 59th Street, 33rd Floor

New York, New York 10022

Attention: Joseph L. Faber, Esq.

Facsimile: 781-795-4747

     (d) Successors. This Agreement shall be to the benefit of and be binding upon the Standby
Purchaser and the Company and, with respect to the provisions of Indemnification hereof, the
several parties (in addition to the Standby Purchaser and the Company) indemnified under the
provisions of said Section 10, and their respective personal representatives, successors and
assigns. Nothing in this Agreement is intended or shall be construed to give any other person any
legal or equitable right, remedy or claim under or in respect of this Agreement, or any provisions
herein contained.

     (e) Counterparts. This Agreement may be executed in any number of counterparts, each of which
shall be deemed to be an original, and all of which together shall be deemed to be one and the same
instrument.

     (f) Governing Law. This Agreement shall be governed by and construed in accordance with the
laws of the State of New York. Any legal suit, action or proceeding arising out of or based upon
this Agreement or the transactions contemplated hereby may be instituted in the federal courts of
the United States of America located in the City and County of New York or the courts of the State
of New York in each case located in the City and County of New York (collectively, the
“Specified Courts”), and each party irrevocably submits to the exclusive jurisdiction
(except for proceedings instituted in regard to the enforcement of a judgment of any such court, as
to which such jurisdiction is non-exclusive) of such courts in any such suit, action or proceeding.
Service of any process, summons, notice or document by mail to such party’s address set forth
above shall be effective service of process for any suit, action or other

30

 

proceeding brought in any such court. The parties irrevocably and unconditionally waive any
objection to the laying of venue of any suit, action or other proceeding in the Specified Courts
and irrevocably and unconditionally waive and agree not to plead or claim in any such court that
any such suit, action or other proceeding brought in any such court has been brought in an
inconvenient forum.

     (g) Entire Agreement. This Agreement sets forth the entire agreement between the Company and
the Standby Purchaser with respect to the subject matter hereof. Any prior agreements or
understandings among the Company and the Standby Purchaser regarding the subject matter hereof,
whether written or oral, are superseded by this Agreement.

 [Intentionally Left Blank]

31

 

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

	 	 	 	 	 	 	 
	 	 	BIOMIMETIC THERAPEUTICS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Samuel E. Lynch
 

Samuel E. Lynch
	 	 
	 

	 	Title:
	 	President & CEO	 	 
	 
	 	 	 	 	 	 
	 	 	NOVO A/S	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Henrik Gürtler
 

Henrik Gürtler
	 	 
	 

	 	Title:
	 	CEO	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Thorkil Kastberg Christensen
 

Thorkil Kastberg Christensen
	 	 
	 

	 	Title:
	 	CFOexv4w2

Exhibit 4.2

 

 

ENERGY TRANSFER PARTNERS, L.P.,

as Issuer,

and

U.S. BANK NATIONAL ASSOCIATION

(AS SUCCESSOR TO

WACHOVIA BANK, NATIONAL ASSOCIATION),

as Trustee

EIGHTH SUPPLEMENTAL INDENTURE

Dated as of April 7, 2009

to

Indenture dated as of January 18, 2005

8.50% Senior Notes due 2014

9.00% Senior Notes due 2019

 

 

 

 

Table of Contents

	 	 	 	 	 
	ARTICLE I DEFINITIONS
	 	 	1	 
	SECTION 1.1 Generally
	 	 	1	 
	SECTION 1.2 Definition of Certain Terms
	 	 	2	 
	 
	 	 	 	 
	ARTICLE II GENERAL TERMS OF THE NOTES
	 	 	6	 
	SECTION 2.1 Form
	 	 	6	 
	SECTION 2.2 Title, Amount and Payment of Principal and Interest
	 	 	7	 
	SECTION 2.3 Transfer and Exchange
	 	 	8	 
	 
	 	 	 	 
	ARTICLE III FUTURE SUBSIDIARY GUARANTEES
	 	 	8	 
	SECTION 3.1 No Initial Guarantee of the Notes by Subsidiary Guarantors
	 	 	8	 
	SECTION 3.2 Future Subsidiary Guarantors
	 	 	8	 
	SECTION 3.3 Release of Guarantees
	 	 	9	 
	SECTION 3.4 Reinstatement of Guarantees
	 	 	9	 
	 
	 	 	 	 
	ARTICLE IV REDEMPTION
	 	 	9	 
	SECTION 4.1 Redemption
	 	 	9	 
	 
	 	 	 	 
	ARTICLE V ADDITIONAL COVENANTS
	 	 	10	 
	SECTION 5.1 Limitation on Liens
	 	 	10	 
	SECTION 5.2 Restriction on Sale-Leasebacks
	 	 	10	 
	 
	 	 	 	 
	ARTICLE VI ADDITIONAL EVENT OF DEFAULT
	 	 	11	 
	SECTION 6.1 Additional Event of Default
	 	 	11	 
	 
	 	 	 	 
	ARTICLE VII MISCELLANEOUS PROVISIONS
	 	 	11	 
	SECTION 7.1 Ratification of Base Indenture
	 	 	11	 
	SECTION 7.2 Trustee Not Responsible for Recitals
	 	 	11	 
	SECTION 7.3
Table of Contents, Headings, etc.
	 	 	12	 
	SECTION 7.4 Counterpart Originals
	 	 	12	 
	SECTION 7.5 Governing Law
	 	 	12	 

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     THIS EIGHTH SUPPLEMENTAL INDENTURE dated as of April 7, 2009 (the “Eighth Supplemental
Indenture”), is among Energy Transfer Partners, L.P., a Delaware limited partnership (the
“Partnership”), and U.S. Bank National Association, a national banking association, as successor to
Wachovia Bank, National Association, a national banking association, as trustee (the “Trustee”).

RECITALS:

     WHEREAS, the Partnership and certain Subsidiary Guarantors have executed and delivered to the
Trustee an Indenture, dated January 18, 2005 (the “Base Indenture” and as supplemented by this
Eighth Supplemental Indenture, the “Indenture”), providing for the issuance by the Partnership from
time to time of its debentures, notes, bonds or other evidences of indebtedness to be issued in one
or more series unlimited as to principal amount (the “Debt Securities”);

     WHEREAS, the Partnership has duly authorized and desires to cause to be established pursuant
to the Base Indenture and this Eighth Supplemental Indenture two new series of Debt Securities
designated the “8.50% Senior Notes due 2014” (the “2014 Notes”) and the “9.00% Senior Notes due
2019” (the “2019 Notes” and together with the 2014 Notes, the “Notes”);

     WHEREAS, Sections 2.01 and 2.04 of the Base Indenture permit the execution of indentures
supplemental thereto to establish the form and terms of Debt Securities of any series;

     WHEREAS, pursuant to Section 9.01 of the Base Indenture, the Partnership has requested that
the Trustee join in the execution of this Eighth Supplemental Indenture to establish the form and
terms of the Notes;

     WHEREAS, all things necessary have been done to make the Notes, when executed by the
Partnership and authenticated and delivered hereunder and under the Base Indenture and duly issued
by the Partnership, the valid obligations of the Partnership, and to make this Eighth Supplemental
Indenture a valid agreement of the Partnership enforceable in accordance with its terms.

     NOW, THEREFORE, the Partnership and the Trustee hereby agree that the following provisions
shall supplement the Base Indenture:

ARTICLE I

DEFINITIONS

SECTION 1.1 Generally.

     (a) Capitalized terms used herein and not otherwise defined herein shall have the respective
meanings ascribed thereto in the Base Indenture.

     (b) The rules of interpretation set forth in the Base Indenture shall be applied hereto as if
set forth in full herein.

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SECTION 1.2 Definition of Certain Terms.

     For all purposes of this Eighth Supplemental Indenture, except as otherwise expressly provided
or unless the context otherwise requires, the following terms shall have the following respective
meanings:

     “Attributable Indebtedness,” when used with respect to any Sale-Leaseback Transaction (as
defined in Section 5.2 hereof), means, as at the time of determination, the present value
(discounted at the rate set forth or implicit in the terms of the lease included in such
transaction) of the total obligations of the lessee for rental payments (other than amounts
required to be paid on account of property taxes, maintenance, repairs, insurance, assessments,
utilities, operating and labor costs and other items that do not constitute payments for property
rights) during the remaining term of the lease included in such Sale-Leaseback Transaction
(including any period for which such lease has been extended). In the case of any lease that is
terminable by the lessee upon the payment of a penalty or other termination payment, such amount
shall be the lesser of the amount determined assuming termination upon the first date such lease
may be terminated (in which case the amount shall also include the amount of the penalty or
termination payment, but no rent shall be considered as required to be paid under such lease
subsequent to the first date upon which it may be so terminated) or the amount determined assuming
no such termination.

     “Comparable Treasury Issue” means the United States Treasury security selected by the
Independent Investment Banker as having a maturity comparable to the remaining term of the Notes to
be redeemed that would be utilized, at the time of selection and in accordance with customary
financial practice, in pricing new issues of corporate debt securities of comparable maturity to
the remaining term of the Notes to be redeemed; provided, however, that if no maturity is within
three months before or after the maturity date for such Notes, yields for the two published
maturities most closely corresponding to such United States Treasury security will be determined
and the treasury rate will be interpolated or extrapolated from those yields on a straight line
basis rounding to the nearest month.

     “Comparable Treasury Price” means, with respect to any Redemption Date, (a) the average of the
Reference Treasury Dealer Quotations for the Redemption Date, after excluding the highest and
lowest Reference Treasury Dealer Quotations, or (b) if the Independent Investment Banker obtains
fewer than four Reference Treasury Dealer Quotations, the average of all such quotations.

     “Consolidated Net Tangible Assets” means, at any date of determination, the total amount of
assets of the Partnership and its consolidated Subsidiaries after deducting therefrom:

     (1) all current liabilities (excluding (A) any current liabilities that by their terms are
extendable or renewable at the option of the obligor thereon to a time more than twelve months
after the time as of which the amount thereof is being computed, and (B) current maturities of
long-term debt); and

     (2) the value (net of any applicable reserves) of all goodwill, trade names, trademarks,
patents and other like intangible assets,

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all as set forth, or on a pro forma basis would be set forth, on the consolidated balance sheet of
the Partnership and its consolidated Subsidiaries for the Partnership’s most recently completed
fiscal quarter for which financial statements have been filed with the SEC, prepared in accordance
with generally accepted accounting principles.

     “Credit Agreement” means the Amended and Restated Credit Agreement, dated as of July 20, 2007,
among the Partnership, Wachovia Bank, National Association, as Administrative Agent, and the other
agents and lenders party thereto and as further amended, restated, refinanced, replaced or refunded
from time to time.

     “Indebtedness” of any Person at any date means any obligation created or assumed by such
Person for the repayment of borrowed money or any guaranty thereof.

     “Independent Investment Banker” means Credit Suisse Securities (USA) LLC, J.P. Morgan
Securities Inc., Morgan Stanley & Co. Incorporated or Greenwich Capital Markets, Inc. (and their
respective successors) or, if any such firm is not willing and able to select the applicable
Comparable Treasury Issue, an independent investment banking institution of national standing
appointed by the Trustee and reasonably acceptable to the Partnership.

     “Permitted Liens” means:

     (1) liens upon rights-of-way for pipeline purposes;

     (2) easements, rights-of-way, restrictions and other similar encumbrances incurred in the
ordinary course of business and encumbrances consisting of zoning restrictions, easements,
licenses, restrictions on the use of real property or minor imperfections in title thereto and
which do not in the aggregate materially adversely affect the value of the properties encumbered
thereby or materially impair their use in the operation of the business of the Partnership and its
Subsidiaries;

     (3) rights reserved to or vested by any provision of law in any municipality or public
authority to control or regulate any of the properties of the Partnership or any Subsidiary or the
use thereof or the rights and interests of the Partnership or any Subsidiary therein, in any manner
under any and all laws;

     (4) rights reserved to the grantors of any properties of the Partnership or any Subsidiary,
and the restrictions, conditions, restrictive covenants and limitations, in respect thereto,
pursuant to the terms, conditions and provisions of any rights-of-way agreements, contracts or
other agreements therewith;

     (5) any statutory or governmental lien or lien arising by operation of law, or any mechanics’,
repairmen’s, materialmen’s, suppliers’, carriers’, landlords’, warehousemen’s or similar lien
incurred in the ordinary course of business which is not more than sixty (60) days past due or
which is being contested in good faith by appropriate proceedings and any undetermined lien which
is incidental to construction, development, improvement or repair;

3

 

     (6) any right reserved to, or vested in, any municipality or public authority by the terms of
any right, power, franchise, grant, license, permit or by any provision of law, to purchase or
recapture or to designate a purchaser of, any property;

     (7) liens for taxes and assessments which are (a) for the then current year, (b) not at the
time delinquent, or (c) delinquent but the validity or amount of which is being contested at the
time by the Partnership or any of its Subsidiaries in good faith by appropriate proceedings;

     (8) liens of, or to secure performance of, leases, other than capital leases;

     (9) any lien in favor of the Partnership or any Subsidiary;

     (10) any lien upon any property or assets of the Partnership or any Subsidiary in existence on
the date of the initial issuance of the Notes;

     (11) any lien incurred in the ordinary course of business in connection with workmen’s
compensation, unemployment insurance, temporary disability, social security, retiree health or
similar laws or regulations or to secure obligations imposed by statute or governmental
regulations;

     (12) liens in favor of any Person to secure obligations under provisions of any letters of
credit, bank guarantees, bonds or surety obligations required or requested by any governmental
authority in connection with any contract or statute, provided that such obligations do not
constitute Indebtedness; or any lien upon or deposits of any assets to secure performance of bids,
trade contracts, leases or statutory obligations, and other obligations of a like nature incurred
in the ordinary course of business;

     (13) any lien upon any property or assets created at the time of acquisition of such property
or assets by the Partnership or any of its Subsidiaries or within one year after such time to
secure all or a portion of the purchase price for such property or assets or debt incurred to
finance such purchase price, whether such debt was incurred prior to, at the time of or within one
year after the date of such acquisition;

     (14) any lien upon any property or assets to secure all or part of the cost of construction,
development, repair or improvements thereon or to secure Indebtedness incurred prior to, at the
time of, or within one year after completion of such construction, development, repair or
improvements or the commencement of full operations thereof (whichever is later), to provide funds
for any such purpose;

     (15) any lien upon any property or assets existing thereon at the time of the acquisition
thereof by the Partnership or any of its Subsidiaries and any lien upon any property or assets of a
Person existing thereon at the time such Person becomes a Subsidiary of the Partnership by
acquisition, merger or otherwise; provided that, in each case, such lien only encumbers the
property or assets so acquired or owned by such Person at the time such Person becomes a
Subsidiary;

     (16) liens imposed by law or order as a result of any proceeding before any court or
regulatory body that is being contested in good faith, and liens which secure a judgment or other

4

 

court-ordered award or settlement as to which the Partnership or the applicable Subsidiary has
not exhausted its appellate rights;

     (17) any extension, renewal, refinancing, refunding or replacement (or successive extensions,
renewals, refinancing, refunding or replacements) of liens, in whole or in part, referred to in
clauses (1) through (16) above; provided, however, that any such extension, renewal, refinancing,
refunding or replacement lien shall be limited to the property or assets covered by the lien
extended, renewed, refinanced, refunded or replaced and that the obligations secured by any such
extension, renewal, refinancing, refunding or replacement lien shall be in an amount not greater
than the amount of the obligations secured by the lien extended, renewed, refinanced, refunded or
replaced and any expenses of the Partnership or its Subsidiaries (including any premium) incurred
in connection with such extension, renewal, refinancing, refunding or replacement; or

     (18) any lien resulting from the deposit of moneys or evidence of indebtedness in trust for
the purpose of defeasing Indebtedness of the Partnership or any of its Subsidiaries.

     “Principal Property” means, whether owned or leased on the date hereof or thereafter acquired:

     (1) any pipeline assets of the Partnership or any of its Subsidiaries, including any related
facilities employed in the gathering, transportation, distribution, storage or marketing of natural
gas, refined petroleum products, natural gas liquids and petrochemicals, that are located in the
United States of America or any territory or political subdivision thereof; and

     (2) any processing, compression, treating, blending or manufacturing plant or terminal owned
or leased by the Partnership or any of its Subsidiaries that is located in the United States or any
territory or political subdivision thereof, except in the case of either of the preceding clauses
(1) or (2):

     (a) any such assets consisting of inventories, furniture, office fixtures and equipment
(including data processing equipment), vehicles and equipment used on, or useful with,
vehicles;

     (b) any such assets which, in the opinion of the board of directors of the General
Partner are not material in relation to the activities of the Partnership and its
Subsidiaries taken as a whole; and

     (c) any assets used primarily in the conduct of the retail propane marketing business
conducted by Heritage Operating, L.P. and its Subsidiaries.

     “Reference Treasury Dealer” means (a) each of Credit Suisse Securities (USA) LLC, J.P. Morgan
Securities Inc., Morgan Stanley & Co. Incorporated, Greenwich Capital Markets, Inc. (or its
relevant affiliate) and their respective successors, and (b) one other primary U.S. government
securities dealer in the United States selected by the Partnership (each, a “Primary Treasury
Dealer”); provided, however, that if any of the foregoing shall resign as a Reference Treasury
Dealer or cease to be a U.S. government securities dealer, the Partnership will substitute therefor
another Primary Treasury Dealer.

5

 

     “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer
and any Redemption Date for the Notes, an average, as determined by the Independent Investment
Banker, of the bid and asked prices for the Comparable Treasury Issue for the Notes to be redeemed
(expressed in each case as a percentage of its principal amount) quoted in writing to the Trustee
by such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day
preceding such Redemption Date.

     “Restricted Subsidiary” means any Subsidiary owning or leasing, directly or indirectly through
ownership in another Subsidiary, any Principal Property.

     “Subsidiary Guarantor” means, with respect to the Notes and notwithstanding the definition
thereof in the Base Indenture, each Subsidiary of the Partnership that guarantees the Notes
pursuant to the terms of the Indenture, but only so long as such Subsidiary is a guarantor of the
Notes on the terms provided in the Indenture.

     “Treasury Yield” means, with respect to any Redemption Date applicable to the Notes, (a) the
yield, under the heading which represents the average for the immediately preceding week, appearing
in the most recently published statistical release designated “H.15(519)” or any successor
publication which is published weekly by the Board of Governors of the Federal Reserve System and
which establishes yields on actively traded United States Treasury securities adjusted to constant
maturity under the caption “Treasury Constant Maturities,” for the maturity corresponding to the
Comparable Treasury Issue; or (b) if the release (or any successor release) is not published during
the week preceding the calculation date or does not contain these yields, the rate per annum equal
to the semi-annual equivalent yield to maturity (computed as of the third Business Day immediately
preceding such Redemption Date) of the Comparable Treasury Issue, assuming a price for the
Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the
applicable Comparable Treasury Price for such Redemption Date.

ARTICLE II

GENERAL TERMS OF THE NOTES

SECTION 2.1 Form.

     The 2014 Notes and the 2019 Notes and the Trustee’s certificates of authentication shall be
substantially in the form of Exhibit A-1 and Exhibit A-2, respectively, to this Eighth Supplemental
Indenture, which are hereby incorporated into this Eighth Supplemental Indenture. The terms and
provisions contained in the Notes shall constitute, and are hereby expressly made, a part of this
Eighth Supplemental Indenture and to the extent applicable, the Partnership and the Trustee, by
their execution and delivery of this Eighth Supplemental Indenture, expressly agree to such terms
and provisions and to be bound thereby.

     Each series of Notes shall be issued upon original issuance in whole in the form of one or
more Global Securities (the “Book-Entry Notes”). Each Book-Entry Note shall represent such of the
outstanding Notes as shall be specified therein and shall provide that it shall represent the
aggregate amount of outstanding Notes from time to time endorsed thereon and that the aggregate
amount of outstanding Notes represented thereby may from time to time be reduced or increased, as
appropriate, to reflect exchanges and redemptions.

6

 

     The Partnership initially appoints The Depository Trust Company to act as Depositary with
respect to the Book-Entry Notes.

SECTION 2.2 Title, Amount and Payment of Principal and Interest.

     (a) The 2014 Notes shall be entitled the “8.50% Senior Notes due 2014”. The Trustee shall
authenticate and deliver (i) the 2014 Notes for original issue on the date hereof (the “Original
2014 Notes”) in the aggregate principal amount of $350,000,000, and (ii) additional 2014 Notes for
original issue from time to time after the date hereof in such principal amounts as may be
specified in a Partnership Order described in this sentence, in each case upon a Partnership Order
for the authentication and delivery thereof and satisfaction of the other provisions of Section
2.04 of the Base Indenture. Such order shall specify the amount of the 2014 Notes to be
authenticated, the date on which the original issue of 2014 Notes is to be authenticated, and the
name or names of the initial Holder or Holders. The aggregate principal amount of 2014 Notes that
may be outstanding at any time may not exceed $350,000,000 plus such additional principal amounts
as may be issued and authenticated pursuant to clause (ii) of this paragraph (except as provided in
Section 2.09 of the Indenture). The Original 2014 Notes and any additional 2014 Notes issued and
authenticated pursuant to clause (ii) of this paragraph shall constitute a single series of Debt
Securities for all purposes under the Indenture.

     The principal amount of each 2014 Note shall be payable on April 15, 2014. Each 2014 Note
shall bear interest from the date of original issuance, or the most recent date to which interest
has been paid, at the fixed rate of 8.50% per annum. The dates on which interest on the 2014 Notes
shall be payable shall be April 15 and October 15 of each year, commencing October 15, 2009 (the
“2014 Interest Payment Dates”). The regular record date for interest payable on the 2014 Notes on
any 2014 Interest Payment Date shall be April 1 or October 1, as the case may be, next preceding
such 2014 Interest Payment Date.

     Payments of principal of, premium, if any, and interest due on the 2014 Notes representing
Book-Entry Notes on any 2014 Interest Payment Date or at maturity will be made available to the
Trustee by 10:00 a.m., New York City time, on such date, unless such date falls on a day which is
not a Business Day, in which case such payments will be made available to the Trustee by 10:00
a.m., New York City time, on the next Business Day. As soon as possible thereafter, the Trustee
will make such payments to the Depositary.

     (b) The 2019 Notes shall be entitled the “9.00% Senior Notes due 2019”. The Trustee shall
authenticate and deliver (i) the 2019 Notes for original issue on the date hereof (the “Original
2019 Notes”) in the aggregate principal amount of $650,000,000, and (ii) additional 2019 Notes for
original issue from time to time after the date hereof in such principal amounts as may be
specified in a Partnership Order described in this sentence, in each case upon a Partnership Order
for the authentication and delivery thereof and satisfaction of the other provisions of Section
2.04 of the Base Indenture. Such order shall specify the amount of the 2019 Notes to be
authenticated, the date on which the original issue of 2019 Notes is to be authenticated, and the
name or names of the initial Holder or Holders. The aggregate principal amount of 2019 Notes that
may be outstanding at any time may not exceed $650,000,000 plus such additional principal amounts
as may be issued and authenticated pursuant to clause (ii) of this paragraph (except as provided in
Section 2.09 of the Indenture). The Original 2019 Notes

7

 

and any additional 2019 Notes issued and authenticated pursuant to clause (ii) of this
paragraph shall constitute a single series of Debt Securities for all purposes under the Indenture.

     The principal amount of each 2019 Note shall be payable on April 15, 2019. Each 2019 Note
shall bear interest from the date of original issuance, or the most recent date to which interest
has been paid, at the fixed rate of 9.00% per annum. The dates on which interest on the 2014 Notes
shall be payable shall be April 15 and October 15 of each year, commencing October 15, 2009 (the
“2019 Interest Payment Dates”). The regular record date for interest payable on the 2019 Notes on
any 2019 Interest Payment Date shall be April 1 or October 1, as the case may be, next preceding
such 2019 Interest Payment Date.

     Payments of principal of, premium, if any, and interest due on the 2019 Notes representing
Book-Entry Notes on any 2019 Interest Payment Date or at maturity will be made available to the
Trustee by 10:00 a.m., New York City time, on such date, unless such date falls on a day which is
not a Business Day, in which case such payments will be made available to the Trustee by 10:00
a.m., New York City time, on the next Business Day. As soon as possible thereafter, the Trustee
will make such payments to the Depositary.

SECTION 2.3 Transfer and Exchange.

     (a) Transfer and Exchange of Global Notes. The transfer and exchange of Book-Entry Notes or
beneficial interests therein shall be effected through the Depositary, in accordance with Section
2.17 of the Base Indenture and Article II of this Eighth Supplemental Indenture (including the
restrictions on transfer set forth therein and herein) and the rules and procedures of the
Depositary therefor, which shall include restrictions on transfer comparable to those set forth
therein and herein to the extent required by the Securities Act of 1933, as amended.

ARTICLE III

FUTURE SUBSIDIARY GUARANTEES

SECTION 3.1 No Initial Guarantee of the Notes by Subsidiary Guarantors.

     The Notes initially shall not be entitled to the benefits of the Guarantee contemplated by
Article X of the Base Indenture.

SECTION 3.2 Future Subsidiary Guarantors.

     If any Subsidiary of the Partnership that is not then a Subsidiary Guarantor guarantees,
becomes a co-obligor with respect to or otherwise provides direct credit support for any
obligations of the Partnership or any of its other Subsidiaries under the Credit Agreement, then
the Partnership shall cause such Subsidiary to promptly execute and deliver to the Trustee a
supplemental indenture to the Indenture, in a form satisfactory to the Trustee, providing for the
Guarantee by such Subsidiary of the Partnership’s obligations under the Notes in accordance with
Article X of the Base Indenture.

8

 

SECTION 3.3 Release of Guarantees.

     In addition to the provisions of Section 10.04(a) of the Base Indenture, the Guarantee of the
Notes of any Subsidiary Guarantor shall be unconditionally released and discharged, following
delivery of written notice by the Partnership to the Trustee, upon the release and discharge of all
guarantees or other obligations of such Subsidiary Guarantor with respect to the obligations of the
Partnership or its Subsidiaries under the Credit Agreement.

SECTION 3.4 Reinstatement of Guarantees.

     If at any time following any release of the Guarantee of a Subsidiary Guarantor pursuant to
Section 3.3 above, such Subsidiary Guarantor again guarantees, becomes a co-obligor with respect to
or otherwise provides direct credit support for any obligations of the Partnership or any of its
Subsidiaries under the Credit Agreement, then such Subsidiary Guarantor shall again guarantee the
Partnership’s obligations under the Notes and the Partnership shall cause such Subsidiary Guarantor
to promptly execute and deliver a supplemental indenture to the Indenture, in a form satisfactory
to the Trustee, providing for the Guarantee by such Subsidiary Guarantor of the Partnership’s
obligations under the Notes in accordance with Article X of the Base Indenture.

ARTICLE IV

REDEMPTION

SECTION 4.1 Redemption.

     The Partnership shall have no obligation to redeem, purchase or repay the Notes pursuant to
any mandatory redemption, sinking fund or analogous provisions or at the option of a Holder
thereof.

     The 2014 Notes are redeemable, at the option of the Partnership, at any time in whole, or from
time to time in part, at a Redemption Price equal to the greater of: (i) 100% of the principal
amount of the 2014 Notes to be redeemed; or (ii) the sum of the present values of the remaining
scheduled payments of principal and interest (at the rate in effect on the date of calculation of
the Redemption Price) on the 2014 Notes to be redeemed that would be due after the related
Redemption Date but for such redemption (exclusive of interest accrued to the Redemption Date)
discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of
twelve 30-day months) at the applicable Treasury Yield plus 50 basis points; plus, in either case,
accrued interest to the Redemption Date.

     The 2019 Notes are redeemable, at the option of the Partnership, at any time in whole, or from
time to time in part, at a Redemption Price equal to the greater of: (i) 100% of the principal
amount of the 2019 Notes to be redeemed; or (ii) the sum of the present values of the remaining
scheduled payments of principal and interest (at the rate in effect on the date of calculation of
the Redemption Price) on the 2019 Notes to be redeemed that would be due after the related
Redemption Date but for such redemption (exclusive of interest accrued to the Redemption Date)
discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of
twelve 30-day months) at the applicable Treasury Yield plus 50 basis points; plus, in either case,
accrued interest to the Redemption Date.

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     The actual Redemption Price, calculated as provided above, shall be calculated and certified
to the Trustee and the Partnership by the Independent Investment Banker.

ARTICLE V

ADDITIONAL COVENANTS

     In addition to the covenants set forth in the Base Indenture, the Notes shall be entitled to
the benefit of the following covenants:

SECTION 5.1 Limitation on Liens.

     The Partnership shall not, nor shall it permit any of its Subsidiaries to, create, assume,
incur or suffer to exist any mortgage, lien, security interest, pledge, charge or other encumbrance
(“liens”) upon any Principal Property or upon any capital stock of any Restricted Subsidiary,
whether owned on the date hereof or thereafter acquired, to secure any Indebtedness of the
Partnership or any other Person (other than the Notes), without in any such case making effective
provisions whereby all of the outstanding Notes are secured equally and ratably with, or prior to,
such Indebtedness so long as such Indebtedness is so secured.

     Notwithstanding the foregoing, the Partnership may, and may permit any of its Subsidiaries to,
create, assume, incur, or suffer to exist without securing the Notes (a) any Permitted Lien, (b)
any lien upon any Principal Property or capital stock of a Restricted Subsidiary to secure
Indebtedness of the Partnership or any other Person, provided that the aggregate principal amount
of all Indebtedness then outstanding secured by such lien and all similar liens under this clause
(b), together with all Attributable Indebtedness from Sale-Leaseback Transactions (excluding
Sale-Leaseback Transactions permitted by clauses (1) through (4), inclusive, of Section 5.2
hereof), does not exceed 10% of Consolidated Net Tangible Assets or (c) any lien upon (i) any
Principal Property that was not owned by the Partnership or any of its Subsidiaries on the date
hereof or (ii) the capital stock of any Restricted Subsidiary that owns no Principal Property that
was owned by the Partnership or any of its Subsidiaries on the date hereof, in each case owned by a
Subsidiary of the Partnership (an “Excluded Subsidiary”) that (A) is not, and is not required to
be, a Subsidiary Guarantor and (B) has not granted any liens on any of its property securing
Indebtedness with recourse to the Partnership or any Subsidiary of the Partnership other than such
Excluded Subsidiary or any other Excluded Subsidiary.

SECTION 5.2 Restriction on Sale-Leasebacks.

     The Partnership will not, and will not permit any Subsidiary to, engage in the sale or
transfer by the Partnership or any of its Subsidiaries of any Principal Property to a Person (other
than the Partnership or a Subsidiary) and the taking back by the Partnership or its Subsidiary, as
the case may be, of a lease of such Principal Property (a “Sale-Leaseback Transaction”), unless:

     (1) such Sale-Leaseback Transaction occurs within one year from the date of completion of the
acquisition of the Principal Property subject thereto or the date of the completion of
construction, development or substantial repair or improvement, or commencement of full operations
on such Principal Property, whichever is later;

10

 

     (2) the Sale-Leaseback Transaction involves a lease for a period, including renewals, of not
more than three years;

     (3) the Partnership or such Subsidiary would be entitled to incur Indebtedness secured by a
lien on the Principal Property subject thereto in a principal amount equal to or exceeding the
Attributable Indebtedness from such Sale-Leaseback Transaction without equally and ratably securing
the Notes; or

     (4) the Partnership or such Subsidiary, within a one-year period after such Sale-Leaseback
Transaction, applies or causes to be applied an amount not less than the Attributable Indebtedness
from such Sale-Leaseback Transaction to (a) the prepayment, repayment, redemption, reduction or
retirement of any Indebtedness of the Partnership or any of its Subsidiaries that is not
subordinated to the Notes or any Guarantee, or (b) the expenditure or expenditures for Principal
Property used or to be used in the ordinary course of business of Partnership or its Subsidiaries.

     Notwithstanding the foregoing, the Partnership may, and may permit any Subsidiary to, effect
any Sale-Leaseback Transaction that is not excepted by clauses (1) through (4), inclusive, of the
preceding paragraph provided that the Attributable Indebtedness from such Sale-Leaseback
Transaction, together with the aggregate principal amount of outstanding Indebtedness (other than
the Notes) secured by liens other than Permitted Liens upon Principal Properties, does not exceed
10% of Consolidated Net Tangible Assets.

ARTICLE VI

ADDITIONAL EVENT OF DEFAULT

SECTION 6.1 Additional Event of Default.

     In addition to the Events of Default specified in Section 6.01 of the Base Indenture, the
following shall be an Event of Default with respect to each series of the Notes: any Indebtedness
of the Partnership or any Subsidiary Guarantor is not paid within any applicable grace period after
final maturity or is accelerated by the holders thereof because of a default and the total amount
of such Indebtedness unpaid or accelerated exceeds $25,000,000.

ARTICLE VII

MISCELLANEOUS PROVISIONS

SECTION 7.1 Ratification of Base Indenture.

     The Base Indenture, as supplemented by this Eighth Supplemental Indenture, is in all respects
ratified and confirmed, and this Eighth Supplemental Indenture shall be deemed part of the Base
Indenture in the manner and to the extent herein and therein provided.

SECTION 7.2 Trustee Not Responsible for Recitals.

     The recitals contained herein and in the Notes, except with respect to the Trustee’s
certificates of authentication, shall be taken as the statements of the Partnership, and the
Trustee

11

 

assumes no responsibility for the correctness of the same. The Trustee makes no
representations as to the validity or sufficiency of this Eighth Supplemental Indenture or of the
Notes.

SECTION 7.3 Table of Contents, Headings, etc.

     The table of contents and headings of the Articles and Sections of this Eighth Supplemental
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.

SECTION 7.4 Counterpart Originals.

     The parties may sign any number of copies of this Eighth Supplemental Indenture. Each signed
copy shall be an original, but all of them together represent the same agreement.

SECTION 7.5 Governing Law.

     THIS EIGHTH SUPPLEMENTAL INDENTURE AND THE NOTES SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

(Signature Pages Follow)

12

 

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

	 	 	 	 	 
	 	ISSUER:

ENERGY TRANSFER PARTNERS, L.P.

 	 
	 	By:  	 Energy Transfer Partners GP, L.P.,
 	 
	 	 	Its:                 General Partner 	 
	 
	 	 	 
	 	By:  	             Energy Transfer Partners, L.L.C.
 	 
	 	 	Its:                 General Partner 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 
	 	TRUSTEE:

U.S. BANK NATIONAL ASSOCIATION

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page of Eighth Supplemental Indenture

 

 

Exhibit A-1

FORM OF NOTE

[FACE OF SECURITY]

[UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (“DTC”) (55 WATER STREET, NEW YORK, NEW YORK 10041) TO THE PARTNERSHIP OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND
ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.]*

[TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF
THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET
FORTH IN THE INDENTURE REFERRED TO HEREIN.]*

			
	 	 	 
	No.                    
	 	$                    
	 
	 	CUSIP: 29273RAL3
	 
	 	ISIN: US29273RAL33

ENERGY TRANSFER PARTNERS, L.P.

8.50% SENIOR NOTES DUE 2014

     ENERGY TRANSFER PARTNERS, L.P., a Delaware limited partnership (the “Partnership,” which term
includes any successor under the Indenture hereinafter referred to), for value received, hereby
promises to pay to Cede & Co.* or its registered assigns, the principal sum of                      U.S.
dollars ($                    ), [or such greater or lesser principal sum as is shown on the attached
Schedule of Increases and Decreases in Global Security]*, on April 15, 2014 in
such coin and currency of the United States of America as at the time of payment shall be legal
tender for the payment of public and private debts, and to pay interest thereon at an annual rate
of 8.50% payable on April 15 and October 15 of each year, to the person in whose name the Security
is registered at the close of business on the record date for such interest, which shall be the
preceding April 1 or October 1 (each, a “Regular Record Date”), respectively, payable commencing on
October 15, 2009, with interest accruing from April 7, 2009, or the most recent date to which
interest shall have been paid.

 

			
	*	 	To be included in a Book Entry Note.

A-1-1

 

     Reference is made to the further provisions of this Security set forth on the reverse hereof.
Such further provisions shall for all purposes have the same effect as though fully set forth at
this place.

     The statements in the legends set forth in this Security are an integral part of the terms of
this Security and by acceptance hereof the Holder of this Security agrees to be subject to, and
bound by, the terms and provisions set forth in each such legend.

     This Security is issued in respect of a series of Debt Securities of an initial aggregate
principal amount of $350,000,000 designated as the 8.50% Senior Notes due 2014 of the Partnership
and is governed by the Indenture dated as of January 18, 2005 (the “Base Indenture”), duly executed
and delivered by the Partnership, as issuer, to Wachovia Bank, National Association, as trustee, as
supplemented by the Eighth Supplemental Indenture dated as of April 7, 2009, duly executed by the
Partnership and U.S. Bank National Association (the “Trustee”), as successor to Wachovia Bank,
National Association, (the “Eighth Supplemental Indenture”, and together with the Base Indenture,
the “Indenture”). The terms of the Indenture are incorporated herein by reference. This Security
shall in all respects be entitled to the same benefits as definitive Debt Securities under the
Indenture.

     If and to the extent any provision of the Indenture limits, qualifies or conflicts with any
other provision of the Indenture that is required to be included in the Indenture or is deemed
applicable to the Indenture by virtue of the provisions of the Trust Indenture Act of 1939, as
amended (the “TIA”), such required provision shall control.

     This Security shall not be valid or become obligatory for any purpose until the Trustee’s
Certificate of Authentication hereon shall have been manually signed by the Trustee under the
Indenture.

A-1-2

 

     IN WITNESS WHEREOF, the Partnership has caused this instrument to be duly executed by its sole
General Partner.

Dated:

	 	 	 	 	 
	 	ENERGY TRANSFER PARTNERS, L.P.

 	 
	 	By:  	 Energy Transfer Partners GP, L.P.
 	 
	 	 	Its:        General Partner 	 
	 
	 	 	 
	 	By:  	                  Energy Transfer Partners, L.L.C.
 	 
	 	 	Its:        General Partner 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION:

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

	 	 	 	 	 
	U.S. BANK NATIONAL ASSOCIATION,	 	 
	as Trustee	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Authorized Signatory
	 	 

A-1-3

 

[REVERSE OF SECURITY]

ENERGY TRANSFER PARTNERS, L.P.

8.50% SENIOR NOTES DUE 2014

     This Security is one of a duly authorized issue of debentures, notes or other evidences of
indebtedness of the Partnership (the “Debt Securities”) of the series hereinafter specified, all
issued or to be issued under and pursuant to the Indenture, to which Indenture reference is hereby
made for a description of the rights, limitations of rights, obligations, duties and immunities
thereunder of the Trustee, the Partnership and the Holders of the Debt Securities. The Debt
Securities may be issued in one or more series, which different series may be issued in various
aggregate principal amounts, may mature at different times, may bear interest (if any) at different
rates, may be subject to different sinking, purchase or analogous funds (if any) and may otherwise
vary as provided in the Indenture. This Security is one of a series designated as the 8.50% Senior
Notes due 2014 of the Partnership, in an initial aggregate principal amount of $350,000,000 (the
“Securities”).

1. Interest.

     The Partnership promises to pay interest on the principal amount of this Security at the rate
of 8.50% per annum.

     The Partnership will pay interest semi-annually on April 15 and October 15 of each year (each
an “Interest Payment Date”), commencing October 15, 2009. Interest on the Securities will accrue
from the most recent date to which interest has been paid or, if no interest has been paid on the
Securities, from April 7, 2009. Interest will be computed on the basis of a 360-day year consisting
of twelve 30-day months. The Partnership shall pay interest (including post-petition interest in
any proceeding under any applicable bankruptcy laws) on overdue installments of interest (without
regard to any applicable grace period) and on overdue principal and premium, if any, from time to
time on demand at the same rate per annum, in each case to the extent lawful.

2. Method of Payment.

     The Partnership shall pay interest on the Securities (except Defaulted Interest) to the
persons who are the registered Holders at the close of business on the Regular Record Date
immediately preceding the Interest Payment Date. Any such interest not so punctually paid or duly
provided for (“Defaulted Interest”) may be paid to the persons who are registered Holders at the
close of business on a special record date for the payment of such Defaulted Interest, or in any
other lawful manner not inconsistent with the requirements of any securities exchange on which such
Securities may then be listed if such manner of payment shall be deemed practicable by the Trustee,
as more fully provided in the Indenture. The Partnership shall pay principal, premium, if any, and
interest in such coin or currency of the United States of America as at the time of payment shall
be legal tender for payment of public and private debts. Payments in respect of a Global Security
(including principal, premium, if any, and interest) will be made by wire transfer of immediately
available funds to the accounts specified by the Depositary. Payments in respect of Securities in
definitive form (including principal, premium, if any, and interest) will be made at the office or
agency of the Partnership maintained for such purpose

A-1-4

 

within The City of New York, which initially will be at the corporate trust office of the
Trustee located at 100 Wall Street, Suite 1600, New York, New York 10005, Mail Station:
EX-NY-WALL, or, at the option of the Partnership, payment of interest may be made by check mailed
to the Holders on the relevant record date at their addresses set forth in the register of Holders
maintained by the Registrar or at the option of the Holder, payment of interest on Securities in
definitive form will be made by wire transfer of immediately available funds to any account
maintained in the United States, provided such Holder has requested such method of payment and
provided timely wire transfer instructions to the Paying Agent. The Holder must surrender this
Security to a Paying Agent to collect payment of principal.

3. Paying Agent and Registrar.

     Initially, U.S. Bank National Association will act as Paying Agent and Registrar. The
Partnership may change any Paying Agent or Registrar at any time upon notice to the Trustee and the
Holders. The Partnership may act as Paying Agent.

4. Indenture.

     This Security is one of a duly authorized issue of Debt Securities of the Partnership issued
and to be issued in one or more series under the Indenture.

     Capitalized terms herein are used as defined in the Indenture unless otherwise defined herein.
The terms of the Securities include those stated in the Base Indenture, those made part of the
Indenture by reference to the TIA, as in effect on the date of the Base Indenture, and those terms
stated in the Eighth Supplemental Indenture. The Securities are subject to all such terms, and
Holders of Securities are referred to the Base Indenture, the Eighth Supplemental Indenture and the
TIA for a statement of them. The Securities of this series are general unsecured obligations of the
Partnership limited to an initial aggregate principal amount of $350,000,000; provided, however,
that the authorized aggregate principal amount of such series may be increased from time to time as
provided in the Eighth Supplemental Indenture.

5. Redemption.

     The Securities are redeemable, at the option of the Partnership, at any time in whole, or from
time to time in part, at a Redemption Price equal to the greater of: (i) 100% of the principal
amount of the Securities to be redeemed; or (ii) the sum of the present values of the remaining
scheduled payments of principal and interest (at the rate in effect on the date of calculation of
the Redemption Price) on the Securities to be redeemed that would be due after the related
Redemption Date but for such redemption (exclusive of interest accrued to the Redemption Date)
discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of
twelve 30-day months) at the applicable Treasury Yield plus 50 basis points; plus, in either case,
accrued interest to the Redemption Date.

     The actual Redemption Price, calculated as provided above, shall be calculated and certified
to the Trustee and the Partnership by the Independent Investment Banker.

     Except as set forth above, the Securities will not be redeemable prior to their Stated
Maturity and will not be entitled to the benefit of any sinking fund.

A-1-5

 

6. Denominations; Transfer; Exchange.

     The Securities are to be issued in registered form, without coupons, in denominations of
$1,000 and integral multiples of $1,000 in excess thereof. 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 and
fees required by law or permitted by the Indenture.

7. Person Deemed Owners.

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

8. Amendment; Supplement; Waiver.

     Subject to certain exceptions, the Indenture may be amended or supplemented, and any existing
Event of Default or compliance with any provision may be waived, with the consent of the Holders of
a majority in principal amount of the outstanding Debt Securities of each series affected. Without
consent of any Holder of a Security, the parties thereto may amend or supplement the Indenture to,
among other things, cure any ambiguity or omission, to correct any defect or inconsistency, or to
make any other change that does not adversely affect the rights of any Holder of a Security. Any
such consent or waiver by the Holder of this Security (unless revoked as provided in the Indenture)
shall be conclusive and binding upon such Holder and upon all future Holders and owners of this
Security and any Securities which may be issued in exchange or substitution herefor, irrespective
of whether or not any notation thereof is made upon this Security or such other Securities.

9. Defaults and Remedies.

     Certain events of bankruptcy or insolvency are Events of Default that will result in the
principal amount of the Securities, together with premium, if any, and accrued and unpaid interest
thereon, becoming due and payable immediately upon the occurrence of such Events of Default. If any
other Event of Default with respect to the Securities occurs and is continuing, then in every such
case the Trustee or the Holders of not less than 25% in aggregate principal amount of the
Securities then outstanding may declare the principal amount of all the Securities, together with
premium, if any, and accrued and unpaid interest thereon, to be due and payable immediately in the
manner and with the effect provided in the Indenture. Notwithstanding the preceding sentence,
however, if at any time after such a declaration of acceleration has been made, the Holders of a
majority in principal amount of the outstanding Securities, by written notice to the Trustee, may
rescind such declaration and annul its consequences if the rescission would not conflict with any
judgment or decree of a court already rendered and if all Events of Default with respect to the
Securities, other than the nonpayment of the principal, premium, if any, or interest which has
become due solely by such declaration acceleration, shall have been cured or shall have been
waived. No such rescission shall affect any subsequent default or shall impair any right consequent
thereon. Holders of Securities may not enforce the Indenture or the Securities except as provided
in the Indenture. The Trustee may require indemnity or security satisfactory to it before it
enforces the Indenture or the Securities. Subject to certain limitations,

A-1-6

 

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.

10. Trustee Dealings with Partnership.

     The Trustee under the Indenture, in its individual or any other capacity, may make loans to,
accept deposits from, and perform services for the Partnership or its Affiliates, and may otherwise
deal with the Partnership or its Affiliates as if it were not the Trustee.

11. Authentication.

     This Security shall not be valid until the Trustee signs the certificate of authentication on
the other side of this Security.

12. Abbreviations and Defined Terms.

     Customary abbreviations may be used in the name of a Holder of a Security or an assignee, such
as: TEN COM (tenant 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 U/G/M/A (Uniform Gifts
to Minors Act).

13. CUSIP Numbers.

     Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification
Procedures, the Partnership has caused CUSIP numbers to be printed on the Securities as a
convenience to the Holders of the Securities. No representation is made as to the accuracy of such
number as printed on the Securities and reliance may be placed only on the other identification
numbers printed hereon.

14. Absolute Obligation.

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

15. No Recourse.

     No director, officer, employee, limited partner or shareholder, as such, of the Partnership or
the General Partner shall have any personal liability in respect of the obligations of the
Partnership under the Securities, the Indenture or any Guarantee by reason of his, her or its
status. Each Holder by accepting the Securities waives and releases all such liability. The waiver
and release are part of the consideration for issuance of the Securities.

16. Governing Law.

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

A-1-7

 

ABBREVIATIONS

The following abbreviations, when used in the inscription on the face of this instrument, shall be
construed as though they were written out in full according to applicable laws or regulations:

	 	 	 
	TEN COM — as tenants in common

	 	UNIF GIFT MIN ACT -
	 

	 	(Cust.)
	TEN ENT — as tenants by entireties

	 	Custodian for:
	 

	 	(Minor)
	JT TEN — as joint tenants with right
of survivorship and not as tenants in
common

	 	Under Uniform Gifts to Minors Act of
	 

	 	(State)

Additional abbreviations may also be used though not in the above list.

ASSIGNMENT

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

PLEASE INSERT SOCIAL SECURITY OR OTHER

IDENTIFYING NUMBER OF ASSIGNEE

Please print or type name and address including postal zip code of assignee:

the within Security and all rights thereunder, hereby irrevocably constituting and appointing to
transfer said Security on the books of the Partnership, with full power of substitution in the
premises.

	 	 	 
	Dated

	 	Registered Holder

A-1-8

 

SCHEDULE OF INCREASES OR DECREASES

IN GLOBAL SECURITY*

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

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Principal Amount of	 	 	 	 
	 	 	Amount of Decrease	 	 	Amount of Increase	 	 	this Global Security	 	 	 	 
	 	 	in Principal Amount	 	 	in Principal Amount	 	 	following such	 	 	Signature of	 
	 	 	of this Global	 	 	of this Global	 	 	decrease (or	 	 	authorized officer of	 
	Date of Exchange	 	Security	 	 	Security	 	 	increase)	 	 	Trustee or Depositary	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

			
	*	 	To be included in a Book-Entry Note.

A-1-9

 

Exhibit A-2

FORM OF NOTE

[FACE OF SECURITY]

[UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (“DTC”) (55 WATER STREET, NEW YORK, NEW YORK 10041) TO THE PARTNERSHIP OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND
ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.]*

[TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF
THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET
FORTH IN THE INDENTURE REFERRED TO HEREIN.]*

			
	 
	No.                     
	 	$                    
	 
	 	CUSIP: 29273RAM1
	 
	 	ISIN: US29273RAM16

ENERGY TRANSFER PARTNERS, L.P.

9.00% SENIOR NOTES DUE 2019

     ENERGY TRANSFER PARTNERS, L.P., a Delaware limited partnership (the “Partnership,” which term
includes any successor under the Indenture hereinafter referred to), for value received, hereby
promises to pay to Cede & Co.* or its registered assigns, the principal sum of __________ U.S.
dollars ($__________________), [or such greater or lesser principal sum as is shown on the attached
Schedule of Increases and Decreases in Global Security]*, on April 15, 2019 in
such coin and currency of the United States of America as at the time of payment shall be legal
tender for the payment of public and private debts, and to pay interest thereon at an annual rate
of 9.00% payable on April 15 and October 15 of each year, to the person in whose name the Security
is registered at the close of business on the record date for such interest, which shall be the
preceding April 1 or October 1 (each, a “Regular Record Date”), respectively, payable commencing on
October 15, 2009, with interest accruing from April 7, 2009, or the most recent date to which
interest shall have been paid.

 

			
	*	 	To be included in Book Entry Note.

A-2-1

 

     Reference is made to the further provisions of this Security set forth on the reverse hereof.
Such further provisions shall for all purposes have the same effect as though fully set forth at
this place.

     The statements in the legends set forth in this Security are an integral part of the terms of
this Security and by acceptance hereof the Holder of this Security agrees to be subject to, and
bound by, the terms and provisions set forth in each such legend.

     This Security is issued in respect of a series of Debt Securities of an initial aggregate
principal amount of $650,000,000 designated as the 9.00% Senior Notes due 2019 of the Partnership
and is governed by the Indenture dated as of January 18, 2005 (the “Base Indenture”), duly executed
and delivered by the Partnership, as issuer, to Wachovia Bank, National Association, as trustee, as
supplemented by the Eighth Supplemental Indenture dated as of April 7, 2009, duly executed by the
Partnership and U.S. Bank National Association (the “Trustee”), as successor to Wachovia Bank,
National Association, (the “Eighth Supplemental Indenture”, and together with the Base Indenture,
the “Indenture”). The terms of the Indenture are incorporated herein by reference. This Security
shall in all respects be entitled to the same benefits as definitive Debt Securities under the
Indenture.

     If and to the extent any provision of the Indenture limits, qualifies or conflicts with any
other provision of the Indenture that is required to be included in the Indenture or is deemed
applicable to the Indenture by virtue of the provisions of the Trust Indenture Act of 1939, as
amended (the “TIA”), such required provision shall control.

     This Security shall not be valid or become obligatory for any purpose until the Trustee’s
Certificate of Authentication hereon shall have been manually signed by the Trustee under the
Indenture.

A-2-2

 

     IN WITNESS WHEREOF, the Partnership has caused this instrument to be duly executed by its sole
General Partner.

Dated:

	 	 	 	 	 
	 	ENERGY TRANSFER PARTNERS, L.P.

By: Energy Transfer Partners GP, L.P.

       Its: General Partner

By: Energy Transfer Partners, L.L.C.

       Its: General Partner

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION:

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

	 	 	 	 	 
	U.S. BANK NATIONAL ASSOCIATION,

as Trustee

 	 	 
	By:  	 	 	 
	 	Authorized Signatory 	 	 
	 	 	 	 

A-2-3

 

[REVERSE OF SECURITY]

ENERGY TRANSFER PARTNERS, L.P.

9.00% SENIOR NOTES DUE 2019

     This Security is one of a duly authorized issue of debentures, notes or other evidences of
indebtedness of the Partnership (the “Debt Securities”) of the series hereinafter specified, all
issued or to be issued under and pursuant to the Indenture, to which Indenture reference is hereby
made for a description of the rights, limitations of rights, obligations, duties and immunities
thereunder of the Trustee, the Partnership and the Holders of the Debt Securities. The Debt
Securities may be issued in one or more series, which different series may be issued in various
aggregate principal amounts, may mature at different times, may bear interest (if any) at different
rates, may be subject to different sinking, purchase or analogous funds (if any) and may otherwise
vary as provided in the Indenture. This Security is one of a series designated as the 9.00% Senior
Notes due 2019 of the Partnership, in an initial aggregate principal amount of $650,000,000 (the
“Securities”).

1. Interest.

     The Partnership promises to pay interest on the principal amount of this Security at the rate
of 9.00% per annum.

     The Partnership will pay interest semi-annually on April 15 and October 15 of each year (each
an “Interest Payment Date”), commencing October 15, 2009. Interest on the Securities will accrue
from the most recent date to which interest has been paid or, if no interest has been paid on the
Securities, from April 7, 2009. Interest will be computed on the basis of a 360-day year consisting
of twelve 30-day months. The Partnership shall pay interest (including post-petition interest in
any proceeding under any applicable bankruptcy laws) on overdue installments of interest (without
regard to any applicable grace period) and on overdue principal and premium, if any, from time to
time on demand at the same rate per annum, in each case to the extent lawful.

2. Method of Payment.

     The Partnership shall pay interest on the Securities (except Defaulted Interest) to the
persons who are the registered Holders at the close of business on the Regular Record Date
immediately preceding the Interest Payment Date. Any such interest not so punctually paid or duly
provided for (“Defaulted Interest”) may be paid to the persons who are registered Holders at the
close of business on a special record date for the payment of such Defaulted Interest, or in any
other lawful manner not inconsistent with the requirements of any securities exchange on which such
Securities may then be listed if such manner of payment shall be deemed practicable by the Trustee,
as more fully provided in the Indenture. The Partnership shall pay principal, premium, if any, and
interest in such coin or currency of the United States of America as at the time of payment shall
be legal tender for payment of public and private debts. Payments in respect of a Global Security
(including principal, premium, if any, and interest) will be made by wire transfer of immediately
available funds to the accounts specified by the Depositary. Payments in respect of Securities in
definitive form (including principal, premium, if any, and interest) will be made at the office or
agency of the Partnership maintained for such purpose

A-2-4

 

within The City of New York, which initially will be at the corporate trust office of the
Trustee located at 100 Wall Street, Suite 1600, New York, New York 10005, Mail Station:
EX-NY-WALL, or, at the option of the Partnership, payment of interest may be made by check mailed
to the Holders on the relevant record date at their addresses set forth in the register of Holders
maintained by the Registrar or at the option of the Holder, payment of interest on Securities in
definitive form will be made by wire transfer of immediately available funds to any account
maintained in the United States, provided such Holder has requested such method of payment and
provided timely wire transfer instructions to the Paying Agent. The Holder must surrender this
Security to a Paying Agent to collect payment of principal.

3. Paying Agent and Registrar.

     Initially, U.S. Bank National Association will act as Paying Agent and Registrar. The
Partnership may change any Paying Agent or Registrar at any time upon notice to the Trustee and the
Holders. The Partnership may act as Paying Agent.

4. Indenture.

     This Security is one of a duly authorized issue of Debt Securities of the Partnership issued
and to be issued in one or more series under the Indenture.

     Capitalized terms herein are used as defined in the Indenture unless otherwise defined herein.
The terms of the Securities include those stated in the Base Indenture, those made part of the
Indenture by reference to the TIA, as in effect on the date of the Base Indenture, and those terms
stated in the Eighth Supplemental Indenture. The Securities are subject to all such terms, and
Holders of Securities are referred to the Base Indenture, the Eighth Supplemental Indenture and the
TIA for a statement of them. The Securities of this series are general unsecured obligations of the
Partnership limited to an initial aggregate principal amount of $650,000,000; provided, however,
that the authorized aggregate principal amount of such series may be increased from time to time as
provided in the Eighth Supplemental Indenture.

5. Redemption.

     The Securities are redeemable, at the option of the Partnership, at any time in whole, or from
time to time in part, at a Redemption Price equal to the greater of: (i) 100% of the principal
amount of the Securities to be redeemed; or (ii) the sum of the present values of the remaining
scheduled payments of principal and interest (at the rate in effect on the date of calculation of
the Redemption Price) on the Securities to be redeemed that would be due after the related
Redemption Date but for such redemption (exclusive of interest accrued to the Redemption Date)
discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of
twelve 30-day months) at the applicable Treasury Yield plus 50 basis points; plus, in either case,
accrued interest to the Redemption Date.

     The actual Redemption Price, calculated as provided above, shall be calculated and certified
to the Trustee and the Partnership by the Independent Investment Banker.

     Except as set forth above, the Securities will not be redeemable prior to their Stated
Maturity and will not be entitled to the benefit of any sinking fund.

A-2-5

 

6. Denominations; Transfer; Exchange.

     The Securities are to be issued in registered form, without coupons, in denominations of
$1,000 and integral multiples of $1,000 in excess thereof. 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 and
fees required by law or permitted by the Indenture.

7. Person Deemed Owners.

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

8. Amendment; Supplement; Waiver.

     Subject to certain exceptions, the Indenture may be amended or supplemented, and any existing
Event of Default or compliance with any provision may be waived, with the consent of the Holders of
a majority in principal amount of the outstanding Debt Securities of each series affected. Without
consent of any Holder of a Security, the parties thereto may amend or supplement the Indenture to,
among other things, cure any ambiguity or omission, to correct any defect or inconsistency, or to
make any other change that does not adversely affect the rights of any Holder of a Security. Any
such consent or waiver by the Holder of this Security (unless revoked as provided in the Indenture)
shall be conclusive and binding upon such Holder and upon all future Holders and owners of this
Security and any Securities which may be issued in exchange or substitution herefor, irrespective
of whether or not any notation thereof is made upon this Security or such other Securities.

9. Defaults and Remedies.

     Certain events of bankruptcy or insolvency are Events of Default that will result in the
principal amount of the Securities, together with premium, if any, and accrued and unpaid interest
thereon, becoming due and payable immediately upon the occurrence of such Events of Default. If any
other Event of Default with respect to the Securities occurs and is continuing, then in every such
case the Trustee or the Holders of not less than 25% in aggregate principal amount of the
Securities then outstanding may declare the principal amount of all the Securities, together with
premium, if any, and accrued and unpaid interest thereon, to be due and payable immediately in the
manner and with the effect provided in the Indenture. Notwithstanding the preceding sentence,
however, if at any time after such a declaration of acceleration has been made, the Holders of a
majority in principal amount of the outstanding Securities, by written notice to the Trustee, may
rescind such declaration and annul its consequences if the rescission would not conflict with any
judgment or decree of a court already rendered and if all Events of Default with respect to the
Securities, other than the nonpayment of the principal, premium, if any, or interest which has
become due solely by such declaration acceleration, shall have been cured or shall have been
waived. No such rescission shall affect any subsequent default or shall impair any right consequent
thereon. Holders of Securities may not enforce the Indenture or the Securities except as provided
in the Indenture. The Trustee may require indemnity or security satisfactory to it before it
enforces the Indenture or the Securities. Subject to certain limitations,

A-2-6

 

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.

10. Trustee Dealings with Partnership.

     The Trustee under the Indenture, in its individual or any other capacity, may make loans to,
accept deposits from, and perform services for the Partnership or its Affiliates, and may otherwise
deal with the Partnership or its Affiliates as if it were not the Trustee.

11. Authentication.

     This Security shall not be valid until the Trustee signs the certificate of authentication on
the other side of this Security.

12. Abbreviations and Defined Terms.

     Customary abbreviations may be used in the name of a Holder of a Security or an assignee, such
as: TEN COM (tenant 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 U/G/M/A (Uniform Gifts
to Minors Act).

13. CUSIP Numbers.

     Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification
Procedures, the Partnership has caused CUSIP numbers to be printed on the Securities as a
convenience to the Holders of the Securities. No representation is made as to the accuracy of such
number as printed on the Securities and reliance may be placed only on the other identification
numbers printed hereon.

14. Absolute Obligation.

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

15. No Recourse.

     No director, officer, employee, limited partner or shareholder, as such, of the Partnership or
the General Partner shall have any personal liability in respect of the obligations of the
Partnership under the Securities, the Indenture or any Guarantee by reason of his, her or its
status. Each Holder by accepting the Securities waives and releases all such liability. The waiver
and release are part of the consideration for issuance of the Securities.

16. Governing Law.

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

A-2-7

 

ABBREVIATIONS

The following abbreviations, when used in the inscription on the face of this instrument, shall be
construed as though they were written out in full according to applicable laws or regulations:

	 	 	 
	TEN COM — as tenants in common

	 	UNIF GIFT MIN ACT -
	 

	 	(Cust.)
	TEN ENT — as tenants by entireties

	 	Custodian for:
	 

	 	(Minor)
	JT TEN — as joint tenants with right
of survivorship and not as tenants in
common

	 	Under Uniform Gifts to Minors Act of
	 

	 	(State)

Additional abbreviations may also be used though not in the above list.

ASSIGNMENT

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

PLEASE INSERT SOCIAL SECURITY OR OTHER

IDENTIFYING NUMBER OF ASSIGNEE

Please print or type name and address including postal zip code of assignee:

the within Security and all rights thereunder, hereby irrevocably constituting and appointing to
transfer said Security on the books of the Partnership, with full power of substitution in the
premises.

	 	 	 
	Dated

	 	Registered Holder

A-2-8

 

SCHEDULE OF INCREASES OR DECREASES

IN GLOBAL SECURITY*

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

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Principal Amount of	 	 	 	 
	 	 	Amount of Decrease	 	 	Amount of Increase	 	 	this Global Security	 	 	 	 
	 	 	in Principal Amount	 	 	in Principal Amount	 	 	following such	 	 	Signature of	 
	 	 	of this Global	 	 	of this Global	 	 	decrease (or	 	 	authorized officer of	 
	Date of Exchange	 	Security	 	 	Security	 	 	increase)	 	 	Trustee or Depositary	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

			
	*	 	To be included in a Book-Entry Note.

A-2-9

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