Document:

exv4w3

 

Exhibit
4.3

 

 

 

DIODES INCORPORATED

and

UNION BANK OF CALIFORNIA, N.A.,

as Trustee

 

INDENTURE

Dated as of October __, 2006

 

$200,000,000 Principal Amount

__% CONVERTIBLE SENIOR NOTES DUE 2026

 

 

 

CROSS-REFERENCE TABLE

	 	 	 
	TIA Section	 	Indenture Section
	310(a)(1)
	 	7.10
	(a)(2)
	 	7.10
	(a)(3)
	 	N.A.
	(a)(4)
	 	N.A.
	(a)(5)
	 	N.A.
	(b)
	 	7.08; 7.10; 14.02
	(c)
	 	N.A.
	311(a)
	 	7.11
	(b)
	 	7.11
	(c)
	 	N.A.
	312(a)
	 	2.05
	(b)
	 	14.03
	(c)
	 	14.03
	313(a)
	 	7.06
	(b)(1)
	 	N.A.
	(b)(2)
	 	7.06
	(c)
	 	7.06; 14.02
	(d)
	 	7.06
	314(a)
	 	4.03
	(b)
	 	N.A.
	(c)(1)
	 	14.04
	(c)(2)
	 	14.04
	(c)(3)
	 	N.A.
	(d)
	 	N.A.
	(e)
	 	14.05
	(f)
	 	N.A.
	315(a)
	 	7.01(B)
	(b)
	 	7.05; 14.02
	(c)
	 	7.01(A)
	(d)
	 	7.01(C)
	(e)
	 	6.11
	316(a) (last sentence)
	 	2.09
	(a)(1)(A)
	 	6.05
	(a)(1)(B)
	 	6.04
	(a)(2)
	 	N.A.
	(b)
	 	6.07
	(c)
	 	N.A.
	317(a)(1)
	 	6.08
	(a)(2)
	 	6.09
	(b)
	 	2.04
	318(a)
	 	14.01

i

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	ARTICLE I. DEFINITIONS AND INCORPORATION BY REFERENCE	 	 	1	 
	Section 1.01
	 	Definitions.	 	 	1	 
	Section 1.02
	 	Other Definitions.	 	 	6	 
	Section 1.03
	 	Incorporation by Reference of Trust Indenture Act.	 	 	8	 
	Section 1.04
	 	Rules of Construction.	 	 	8	 
	 
	 	 	 	 	 	 
	ARTICLE II. THE SECURITIES	 	 	9	 
	Section 2.01
	 	Form and Dating.	 	 	9	 
	Section 2.02
	 	Execution and Authentication.	 	 	10	 
	Section 2.03
	 	Registrar, Paying Agent and Conversion Agent.	 	 	10	 
	Section 2.04
	 	Paying Agent to Hold Money in Trust.	 	 	11	 
	Section 2.05
	 	Securityholder Lists.	 	 	11	 
	Section 2.06
	 	Transfer and Exchange.	 	 	11	 
	Section 2.07
	 	Replacement Securities.	 	 	12	 
	Section 2.08
	 	Outstanding Securities.	 	 	12	 
	Section 2.09
	 	Securities Held by the Company or an Affiliate.	 	 	13	 
	Section 2.10
	 	Temporary Securities.	 	 	13	 
	Section 2.11
	 	Purchase and Cancellation.	 	 	14	 
	Section 2.12
	 	Defaulted Interest.	 	 	14	 
	Section 2.13
	 	CUSIP Numbers.	 	 	14	 
	Section 2.14
	 	Deposit of Moneys.	 	 	15	 
	Section 2.15
	 	Book-Entry Provisions for Global Securities.	 	 	15	 
	Section 2.16
	 	Special Transfer Provisions.	 	 	16	 
	Section 2.17
	 	Restrictive Legends.	 	 	16	 
	 
	 	 	 	 	 	 
	ARTICLE III. REDEMPTION AND REPURCHASE	 	 	16	 
	Section 3.01
	 	Right of Redemption.	 	 	17	 
	Section 3.02
	 	Notices to Trustee.	 	 	17	 
	Section 3.03
	 	Selection of Securities to be Redeemed.	 	 	17	 
	Section 3.04
	 	Notice of Redemption.	 	 	18	 
	Section 3.05
	 	Effect of Notice of Redemption.	 	 	19	 
	Section 3.06
	 	Deposit of Redemption Price.	 	 	19	 
	Section 3.07
	 	Securities Redeemed in Part.	 	 	20	 
	Section 3.08
	 	Purchase of Securities at Option of the Holder.	 	 	20	 
	Section 3.09
	 	Repurchase at Option of Holder Upon a Fundamental Change.	 	 	24	 
	 
	 	 	 	 	 	 
	ARTICLE IV. COVENANTS	 	 	30	 
	Section 4.01
	 	Payment of Securities.	 	 	30	 
	Section 4.02
	 	Maintenance of Office or Agency.	 	 	31	 
	Section 4.03
	 	Annual Reports.	 	 	31	 
	Section 4.04
	 	Compliance Certificate.	 	 	32	 
	Section 4.05
	 	Stay, Extension and Usury Laws.	 	 	32	 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	Section 4.06
	 	Corporate Existence.	 	 	32	 
	Section 4.07
	 	Notice of Default.	 	 	32	 
	Section 4.08
	 	Further Instruments And Acts.	 	 	32	 
	Section 4.09
	 	Payment of Taxes And Other Claims.	 	 	33	 
	 
	 	 	 	 	 	 
	ARTICLE V. SUCCESSORS	 	 	33	 
	Section 5.01
	 	When Company may merge, etc.	 	 	33	 
	Section 5.02
	 	Successor Substituted.	 	 	33	 
	 
	 	 	 	 	 	 
	ARTICLE VI. DEFAULTS AND REMEDIES	 	 	34	 
	Section 6.01
	 	Events of Default.	 	 	34	 
	Section 6.02
	 	Acceleration.	 	 	36	 
	Section 6.03
	 	Other Remedies.	 	 	36	 
	Section 6.04
	 	Waiver of Past Defaults.	 	 	36	 
	Section 6.05
	 	Control by Majority.	 	 	37	 
	Section 6.06
	 	Limitation on Suits.	 	 	37	 
	Section 6.07
	 	Rights of Holders to Receive Payment.	 	 	38	 
	Section 6.08
	 	Collection Suit by Trustee.	 	 	38	 
	Section 6.09
	 	Trustee May File Proofs of Claim.	 	 	38	 
	Section 6.10
	 	Priorities.	 	 	38	 
	Section 6.11
	 	Undertaking for Costs.	 	 	39	 
	 
	 	 	 	 	 	 
	ARTICLE VII. TRUSTEE	 	 	39	 
	Section 7.01
	 	Duties of Trustee.	 	 	39	 
	Section 7.02
	 	Rights of Trustee.	 	 	40	 
	Section 7.03
	 	Individual Rights of Trustee.	 	 	42	 
	Section 7.04
	 	Disclaimer of the Trustee.	 	 	42	 
	Section 7.05
	 	Notice of Defaults.	 	 	42	 
	Section 7.06
	 	Reports by Trustee to Holders.	 	 	42	 
	Section 7.07
	 	Compensation and Indemnity.	 	 	43	 
	Section 7.08
	 	Replacement of Trustee.	 	 	43	 
	Section 7.09
	 	Successor Trustee by Merger, Etc.	 	 	44	 
	Section 7.10
	 	Eligibility; Disqualification.	 	 	44	 
	Section 7.11
	 	Preferential Collection of Claims Against Company.	 	 	45	 
	 
	 	 	 	 	 	 
	ARTICLE VIII. DISCHARGE OF INDENTURE	 	 	45	 
	Section 8.01
	 	Termination of the Obligations of the Company.	 	 	45	 
	Section 8.02
	 	Application of Trust Money.	 	 	45	 
	Section 8.03
	 	Repayment to Company.	 	 	45	 
	Section 8.04
	 	Reinstatement.	 	 	46	 
	 
	 	 	 	 	 	 
	ARTICLE IX. AMENDMENTS	 	 	46	 
	Section 9.01
	 	Without Consent of Holders.	 	 	46	 
	Section 9.02
	 	With Consent of Holders.	 	 	47	 
	Section 9.03
	 	Compliance with Trust Indenture Act.	 	 	48	 
	Section 9.04
	 	Revocation and Effect of Consents.	 	 	48	 
	Section 9.05
	 	Notation on or Exchange of Securities.	 	 	49	 

iii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	Section 9.06
	 	Trustee Protected.	 	 	49	 
	Section 9.07
	 	Effect of Supplemental Indentures.	 	 	49	 
	 
	 	 	 	 	 	 
	ARTICLE X. CONVERSION	 	 	49	 
	Section 10.01
	 	Conversion Privilege; Restrictive Legends.	 	 	49	 
	Section 10.02
	 	Conversion Procedure And Payment Upon Conversion.	 	 	52	 
	Section 10.03
	 	Taxes on Conversion.	 	 	55	 
	Section 10.04
	 	Company to Provide Stock.	 	 	55	 
	Section 10.05
	 	Adjustment of Conversion Rate.	 	 	55	 
	Section 10.06
	 	No Adjustment.	 	 	60	 
	Section 10.07
	 	Other Adjustments.	 	 	61	 
	Section 10.08
	 	Adjustments for Tax Purposes.	 	 	61	 
	Section 10.09
	 	Notice of Adjustment.	 	 	61	 
	Section 10.10
	 	Notice of Certain Transactions.	 	 	61	 
	Section 10.11
	 	Effect of Reclassifications, Consolidations, Mergers, Binding	 	 	 	 
	 
	 	Share Exchanges or Sales on Conversion Privilege.	 	 	62	 
	Section 10.12
	 	Disclaimer of the Trustee and the Conversion Agent.	 	 	63	 
	Section 10.13
	 	Rights Distributions Pursuant to Stockholders' Rights Plans.	 	 	64	 
	Section 10.14
	 	Increased Conversion Rate Applicable to Certain Notes	 	 	 	 
	 
	 	Surrendered in Connection with Make-Whole Fundamental	 	 	 	 
	 
	 	Changes.	 	 	64	 
	 
	 	 	 	 	 	 
	ARTICLE XI. [RESERVED]	 	 	69	 
	 
	 	 	 	 	 	 
	ARTICLE XII. [RESERVED]	 	 	69	 
	 
	 	 	 	 	 	 
	ARTICLE XIII. TAX TREATMENT	 	 	69	 
	Section 13.01
	 	Tax Treatment.	 	 	69	 
	Section 13.02
	 	Tax Withholding Obligations.	 	 	70	 
	 
	 	 	 	 	 	 
	ARTICLE XIV. MISCELLANEOUS	 	 	70	 
	Section 14.01
	 	Trust Indenture Act Controls.	 	 	70	 
	Section 14.02
	 	Notices.	 	 	71	 
	Section 14.03
	 	Communication By Holders With Other Holders.	 	 	72	 
	Section 14.04
	 	Certificate and Opinion as to Conditions Precedent.	 	 	72	 
	Section 14.05
	 	Statements Required in Certificate or Opinion.	 	 	72	 
	Section 14.06
	 	Rules By Trustee and Agents.	 	 	73	 
	Section 14.07
	 	Legal Holidays.	 	 	73	 
	Section 14.08
	 	Duplicate Originals.	 	 	73	 
	Section 14.09
	 	Governing Law.	 	 	73	 
	Section 14.10
	 	No Adverse Interpretation of Other Agreements.	 	 	73	 
	Section 14.11
	 	Successors.	 	 	73	 
	Section 14.12
	 	Separability.	 	 	73	 
	Section 14.13
	 	Table of Contents, Headings, Etc.	 	 	74	 
	Section 14.14
	 	Calculations in Respect of the Securities.	 	 	74	 
	Section 14.15
	 	No Personal Liability of Directors, Officers, Employees or	 	 	 	 
	 
	 	Stockholders.	 	 	74	 

iv

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	Section 14.16
	 	USA Patriot Act.	 	 	74	 

	 	 	 	 	 
	Exhibit A

	 	—
	 	Form of Global Security
	Exhibit B-1

	 	—
	 	Form of Legend for Global Security
	Exhibit B-2

	 	—
	 	Form of Tax Legend
	Exhibit C

	 	—
	 	Projected Payment Schedule

v

 

          INDENTURE, dated as of October ___, 2006, between Diodes Incorporated, a Delaware corporation
(the “Company”), and Union Bank of California, N.A., as trustee (the “Trustee”).

          Each party agrees as follows for the benefit of the other party and for the equal and ratable
benefit of the Holders (as defined below) of the Company’s ___% Convertible Senior Notes due 2026
(the “Securities”).

ARTICLE I.

DEFINITIONS AND INCORPORATION BY REFERENCE

     Section 1.01 Definitions.

          “Affiliate” means any person directly or indirectly controlling or controlled by or under
direct or indirect common control with the Company. For this purpose, “control” shall mean the
power to direct the management and policies of a person through the ownership of securities, by
contract or otherwise.

          “Agent” means any Registrar, Paying Agent, Conversion Agent or co-registrar.

          “Asset Sale Make-Whole Fundamental Change” means a sale, transfer, lease, conveyance or other
disposition of all or substantially all of the property or assets of the Company to any “person” or
“group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act), including any
group acting for the purpose of acquiring, holding, voting or disposing of securities within the
meaning of Rule 13d-5(b)(1) under the Exchange Act.

          “Bid Solicitation Agent” means a Company-appointed agent that performs calculations as set
forth in Article X and paragraphs 1 and 10 of the Securities.

          “Board of Directors” means the Board of Directors of the Company.

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

          “Capital Stock” of any Person means any and all shares, interests, participations or other
equivalents (however designated) of capital stock of such Person and all warrants or options to
acquire such capital stock.

          “Closing Sale Price” means the price of a share of Common Stock (or other share of Capital
Stock) on the relevant date, determined (a) on the basis of the closing sale price per share of
Common Stock (or such other share of Capital Stock) (or if no closing sale price per share of
Common Stock (or such other share of Capital Stock) is reported, the average of the bid and ask
prices per share of Common Stock (or such other share of Capital Stock) or, if more than one in
either case, the average of the average bid and the average ask prices per share of Common Stock
(or such other share of capital stock)) on such date as reported by the Nasdaq Global Select
Market; or (b) if the Common Stock (or such other share of Capital Stock) is not

 

 

then listed on the Nasdaq Global Select Market, as reported by the U.S. national securities
exchange on which the Common Stock (or such other share of Capital Stock) is listed; or (c) if not
so quoted, as reported by National Quotation Bureau, Incorporated or a similar organization. In
the absence of a quotation, the Closing Sale Price shall be such price as the Company shall
reasonably determine on the basis of such quotations as most accurately reflecting the price that a
fully informed buyer, acting on his own accord, would pay to a fully informed seller, acting on his
own accord in an arms-length transaction, for a share of Common Stock (or such other share of
Capital Stock) and provided that after the consummation of a Fundamental Change in which the
consideration is comprised entirely of cash, the Closing Sale Price shall be the cash price paid
per share received by holders of Common Stock in such Fundamental Change.

          “Common Stock” means the common stock, without par value, of the Company, or such other
Capital Stock of the Company into which the Company’s common stock is reclassified or changed.

          “Common Stock Change Make-Whole Fundamental Change” means any transaction or series of related
transactions (other than a Listed Stock Business Combination), in connection with which (whether by
means of an exchange offer, liquidation, tender offer, consolidation, merger, combination,
reclassification, recapitalization, asset sale, lease of assets or otherwise) the Common Stock is
exchanged for, converted into, acquired for or constitutes solely the right to receive other
securities, other property, assets or cash.

          “Company” means the party named as such above until a successor replaces it pursuant to the
applicable provision hereof and thereafter means the successor. The foregoing sentence shall
likewise apply to any such successor or subsequent successor.

          “Company Order” or “Company Request” means a written request or order signed on behalf of the
Company by its Chairman of the Board, its Chief Executive Officer, its President, its Chief
Operating Officer, its Chief Financial Officer or any Vice President and by its Treasurer or an
Assistant Treasurer or its Secretary or an Assistant Secretary, and delivered to the Trustee.

          “Contingent Interest” has the meaning set forth in paragraph 1 of the Securities.

          “Contingent Interest Measurement Period” has the meaning set forth in paragraph 1 of the
Securities.

          “Contingent Interest Period” has the meaning set forth in paragraph 1 of the Securities.

          “Contingent Interest Trading Price” has the meaning set forth in paragraph 1 of the
Securities.

          “Conversion Price” means, as of any date of determination, the dollar amount derived by
dividing one thousand dollars ($1,000) by the Conversion Rate in effect on such date.

          “Conversion Rate” shall initially be ___shares of Common Stock per $1,000 principal amount
of Securities, subject to adjustment as provided in Article X.

2

 

          “Corporate Trust Office” shall mean (i) with respect to the Trustee, Union Bank of California,
N.A., 120 South San Pedro Street, 4th Floor, Los Angeles, California 90012, Attention: Corporate
Trust Services or any other address that the Trustee may designate with respect to itself from time
to time by notice to the Company and the Securityholders.

          “Default” means any event which is, or after notice or passage of time or both would be, an
Event of Default.

          “Depositary” means The Depository Trust Company, its nominees and successors.

          “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations of the SEC thereunder.

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

          “Indebtedness” of a person means the principal of, premium, if any, and interest on, and all
other obligations in respect of (a) all indebtedness of such person for borrowed money (including
all indebtedness evidenced by notes, bonds, debentures or other securities), (b) all obligations
(other than trade payables or other accrued current liability or obligation incurred in the
ordinary course of business in connection with the obtaining of materials or services) incurred by
such person in the acquisition (whether by way of purchase, merger, consolidation or otherwise and
whether by such person or another person) of any business, real property or other assets, (c) all
reimbursement obligations of such person with respect to letters of credit, bankers’ acceptances or
similar facilities issued for the account of such person, (d) all capital lease obligations of such
person, (e) all net obligations (contingent or otherwise) of such person under interest rate swap,
foreign currency exchange or similar instruments or agreements of such person, (f) all obligations
and other liabilities, contingent or otherwise, under any lease or related document, including a
purchase agreement, conditional sale or other title retention agreement, in connection with the
lease of real property or improvements thereon (or any personal property included as part of any
such lease) which provides that such person is contractually obligated to purchase or cause a third
party to purchase the leased property or pay an agreed-upon residual value of the leased property,
including such person’s obligations under such lease or related document to purchase or cause a
third party to purchase such leased property or pay an agreed-upon residual value of the leased
property to the lessor, (g) guarantees by such person of indebtedness described in clauses (a)
through (f) of another person, and (h) all renewals, extensions, refundings, deferrals,
restructurings, amendments and modifications of any indebtedness, obligation, guarantee or
liability of the kind described in clauses (a) through (g).

          “Indenture” means this Indenture as amended or supplemented from time to time.

          “Issue Date” means October ___, 2006.

          “Make-Whole Fundamental Change” means an Asset Sale Make-Whole Fundamental Change or a Common
Stock Change Make-Whole Fundamental Change that occurs before October 1, 2011.

3

 

          “Market Disruption Event” means the occurrence or existence during the one-half hour period
ending on the scheduled close of trading on any Trading Day for the Common Stock of any material
suspension or limitation imposed on trading (by reason of movements in price exceeding limits
permitted by the stock exchange or otherwise) in the Common Stock or in any options, contracts or
future contracts relating solely to the Common Stock.

          “Maturity Date” means October 1, 2026.

          “Net Shares” means the shares of Common Stock, if any, that are due upon conversion pursuant
to Article X.

          “Obligations” means any principal, interest, penalties, fees, indemnifications, reimbursement
obligations, damages and other liabilities payable under the documentation governing any
Indebtedness.

          “Officer” means the Chairman of the Board, the Chief Executive Officer, the President, the
Chief Operating Officer, the Chief Financial Officer, any Executive Vice President, any Senior Vice
President, the Treasurer or the Secretary of the Company.

          “Officer’s Certificate” means a certificate signed by one Officer of the Company.

          “Opinion of Counsel” means a written opinion from legal counsel who may be an employee of or
counsel for the Company, or other counsel reasonably acceptable to the Trustee.

          “Option” means the Underwriters’ option to acquire up to $30,000,000 aggregate principal
amount of additional Securities (“Additional Securities”) as provided for in the Underwriting
Agreement.

          “Person” or “person” means any individual, corporation, partnership, limited liability
company, joint venture, association, joint-stock company, trust, unincorporated organization or any
entity similar to any of the foregoing organized under the law of other countries, or government or
other agency or political subdivision thereof.

          “Post-Petition Interest” means, with respect to any Indebtedness of any Person, all interest
accrued or accruing on such Indebtedness after the commencement of any insolvency or liquidation
proceeding against such Person in accordance with and at the contract rate (including, without
limitation, any rate applicable upon default), specified in the agreement or instrument creating,
evidencing or governing such Indebtedness, whether or not, pursuant to applicable law or otherwise,
the claim for such interest is allowed as a claim in such insolvency or liquidation proceeding.

          “Principal Return” means the amount of cash that is due upon conversion pursuant to Article X.

          “Public Acquirer Fundamental Change” shall mean a Common Stock Change Make-Whole Fundamental
Change where the acquirer (or any entity that “beneficially owns”

4

 

(within the meaning of Rule 13d-3 under the Exchange Act) more than 50% of the total
outstanding voting power of all classes of such acquirer’s capital stock entitled to vote generally
in the election of directors) has a class of common stock (the “Public Acquirer Common Stock”) that
is traded on a U.S. national securities exchange or quoted on the Nasdaq Global Select Market or
that will be so traded or quoted when issued or exchanged in connection with such Common Stock
Change Make-Whole Fundamental Change.

          “Purchase Notice” means a Purchase Notice in the form set forth in the Securities.

          “Redemption Date” means the date specified by the Company for Redemption of the Securities in
accordance with the terms of the Securities and this Indenture.

          “Redemption Price” means, with respect to a Security to be redeemed by the Company in
accordance with Section 3.01, one hundred percent (100%) of the outstanding principal amount of
such Security to be redeemed.

          “Responsible Officer” shall mean, when used with respect to the Trustee, any officer within
the corporate trust department of the Trustee, including any managing director, director, vice
president, assistant vice president, assistant secretary, associate, trust officer or any other
officer of the Trustee, as applicable, who customarily performs functions similar to those
performed by the Persons who at the time shall be such officers, respectively, or to whom any
corporate trust matter is referred because of such person’s knowledge of and familiarity with the
particular subject and who shall in each case have direct responsibility for the administration of
this Indenture.

          “SEC” means the Securities and Exchange Commission.

          “Securities” means the ___% Convertible Senior Notes due 2026 issued by the Company pursuant
to this Indenture.

          “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations
of the SEC thereunder.

          “Significant Subsidiary” with respect to any person means any subsidiary of such person that
constitutes a “significant subsidiary” within the meaning of Rule 1-02(w) of Regulation S-X under
the Securities Act, as such regulation is in effect on the date of this Indenture.

          “Subsidiary” means (i) a corporation a majority of whose Voting Stock is at the time, directly
or indirectly, owned by the Company, by one or more subsidiaries of the Company or by the Company
and one or more of its subsidiaries or (ii) any other person (other than a corporation) in which
the Company, one or more of its subsidiaries, or the Company and one or more of its subsidiaries,
directly or indirectly, at the date of determination thereof, own at least a majority ownership
interest.

          “TIA” means the Trust Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb) as in effect on the
Issue Date; provided, however, that if the TIA is amended after such date, “TIA”

5

 

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

          “Trading Day” means any day during which all of the following conditions are satisfied: (i)
trading in the Common Stock generally occurs; (ii) there is no Market Disruption Event; and (iii) a
closing sale price for the Common Stock is provided on the Nasdaq Global Select Market or, if the
Common Stock is not then listed on the Nasdaq Global Select Market, on the principal other U.S.
national or regional securities exchange on which the Common Stock is then listed or, if the Common
Stock is not listed on a U.S. national or regional securities exchange, on the principal other
market on which the Common Stock is then traded.

          “Trading Price” means, on any date, the average of the secondary market bid quotations for the
Securities obtained by the Bid Solicitation Agent on behalf of the Trustee for five million dollars
($5,000,000) principal amount of Securities at approximately 4:00 p.m., New York City time, on such
date, from three (3) independent, nationally recognized securities dealers selected by the Company;
provided, that if the Bid Solicitation Agent on behalf of the Trustee reasonably determines that it
can obtain only two (2) such bids, then the average of such two (2) bids shall instead be used;
provided further, that if the Bid Solicitation Agent on behalf of the Trustee reasonably determines
that it can obtain only one (1) such bid, then such bid shall instead be used; provided further,
that if, on a given date, the Bid Solicitation Agent on behalf of the Trustee reasonably determines
that it cannot obtain at least one (1) such bid, or if, in the reasonable, good faith judgment of
the Board of Directors, which judgment shall be described in a Board Resolution, the bid quotation
or quotations so obtained by the Bid Solicitation Agent on behalf of the Trustee are not indicative
of the secondary market value of the Securities, then, in each case, the Trading Price per $1,000
principal amount of Securities on such date shall be deemed to be equal to 98% of the product of
(I) the Conversion Rate in effect on such date and (II) the Closing Sale Price on such date.

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

          “Underwriters” means UBS Securities LLC, A.G. Edwards & Sons, Inc., C.E. Unterberg, Towbin,
LLC and Raymond James & Associates, Inc.

          “Underwriting Agreement” means the Underwriting Agreement dated October ___, 2006 between the
Company and the UBS Securities LLC, as representative of the Underwriters.

          “Voting Stock” of any Person means all classes of the Capital Stock of such Person ordinarily
entitled to vote generally in the election of directors of such Person.

     Section 1.02 Other Definitions.

	 	 	 	 	 
	Term	 	Defined in Section
	“Acquirer Stock Conversion Right Adjustment”

	 	 	10.14	 
	“Acquisition of Voting Control”

	 	 	3.09	 
	“Additional Securities”

	 	definition of “Option”

6

 

	 	 	 	 	 
	Term	 	Defined in Section
	“Aggregate Amount”

	 	 	10.05	 
	“Applicable Price”

	 	 	10.14	 
	“Bankruptcy Law”

	 	 	6.01	 
	“BCF Adjustment Cap”

	 	 	10.06	 
	“BCF Make-Whole Cap”

	 	 	10.14	 
	“Business Day”

	 	 	14.07	 
	“Cash Percentage”

	 	 	10.02	 
	“Cash Percentage Notice”

	 	 	10.02	 
	“Cash Settlement Averaging Period”

	 	 	10.02	 
	“Change in Control”

	 	 	3.09	 
	“Collective Election”

	 	 	10.11	 
	“Contingent Payment Regulations”

	 	 	13.01	 
	“Conversion Agent”

	 	 	2.03	 
	“Conversion Date”

	 	 	10.02	 
	“Conversion Value”

	 	 	10.01	 
	“Current Market Price”

	 	 	10.05	 
	“Custodian”

	 	 	6.01	 
	“Daily Conversion Value”

	 	 	10.02	 
	“Daily Principal Return”

	 	 	10.02	 
	“Daily Settlement Amount”

	 	 	10.02	 
	“Daily Share Amount”

	 	 	10.02	 
	“Determination Date”

	 	 	10.05	 
	“Distribution Date”

	 	 	10.05	 
	“Effective Date”

	 	 	10.14	 
	“Event of Default”

	 	 	6.01	 
	“Ex Date”

	 	 	10.05	 
	“Expiration Date”

	 	 	10.05	 
	“Expiration Time”

	 	 	10.05	 
	“Fundamental Change”

	 	 	3.09	 
	“Fundamental Change Notice”

	 	 	3.09	 
	“Fundamental Change Repurchase Date”

	 	 	3.09	 
	“Fundamental Change Repurchase Price”

	 	 	3.09	 
	“Fundamental Change Repurchase Right”

	 	 	3.09	 
	“Global Security”

	 	 	2.01	 
	“Legal Holiday”

	 	 	14.07	 
	“Listed Stock Business Combination”

	 	 	3.09	 
	“Make-Whole Applicable Increase”

	 	 	10.14	 
	“Make-Whole Conversion Period”

	 	 	10.14	 
	“Make-Whole Consideration”

	 	 	10.14	 
	“Notice of Default”

	 	 	6.01	 
	“Note Measurement Period”

	 	 	10.01	 
	“Option Purchase Date”

	 	 	3.08	 
	“Option Purchase Notice”

	 	 	3.08	 
	“Option Purchase Price”

	 	 	3.08	 
	“Participants”

	 	 	2.15	 

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	Term	 	Defined in Section
	“Paying Agent”

	 	 	2.03	 
	“Physical Securities”

	 	 	2.01	 
	“Public Acquirer Common Stock”

	 	definition of “Public

	 

	 	Acquirer Fundamental Change”

	“Purchase at Holder’s Option”

	 	Article III

	“Purchased Shares”

	 	 	10.05	 
	“Redemption”

	 	Article III

	“Reference Property”

	 	 	10.11	 
	“Registrar”

	 	 	2.03	 
	“Repurchase Upon Fundamental Change”

	 	Article III

	“Rights”

	 	 	10.05	 
	“Settlement Amount”

	 	 	10.02	 
	“Tax Legend”

	 	 	2.17	 
	“Termination of Trading”

	 	 	3.09	 
	“Trading Price Condition”

	 	 	10.01	 
	“Underlying Shares”

	 	 	10.05	 

     Section 1.03 Incorporation by Reference of Trust Indenture Act.

          Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by
reference in and made a part of this Indenture.

          The following TIA terms used in this Indenture have the following meanings:

          “Commission” means the SEC;

          “indenture securities” means the Securities;

          “indenture security holder” means a Securityholder or a Holder;

          “indenture to be qualified” means this Indenture;

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

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

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

     Section 1.04 Rules of Construction.

          Unless the context otherwise requires:

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

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          (ii) an accounting term not otherwise defined has the meaning assigned to it in accordance
with U.S. generally accepted accounting principles in effect from time to time;

          (iii) “or” is not exclusive;

          (iv) “including” means “including without limitation”;

          (v) words in the singular include the plural and words in the plural include the singular;

          (vi) provisions apply to successive events and transactions;

          (vii) the term “interest” includes Contingent Interest, unless the context otherwise requires;

          (viii) “herein,” “hereof” and other words of similar import refer to this Indenture as a whole
and not to any particular Article, Section or other subdivision of this Indenture; and

          (ix) references to currency shall mean the lawful currency of the United States of America,
unless the context requires otherwise.

ARTICLE II.

THE SECURITIES

     Section 2.01 Form and Dating.

          The Securities and the Trustee’s certificate of authentication shall be substantially in the
form set forth in Exhibit A, which is incorporated in and forms a part of this Indenture. The
Securities may have notations, legends or endorsements as required by law, stock exchange rule or
usage, provided such notations, legends or endorsements are in form reasonably acceptable to the
Company. Each Security shall be dated the date of its authentication.

          The Securities shall be issued initially in the form of one or more Global Securities,
substantially in the form set forth in Exhibit A (the “Global Security”), deposited with the
Trustee, as custodian for the Depositary, registered in the name of the Depositary or a nominee
thereof, duly executed by the Company and authenticated by the Trustee as hereinafter provided and
bearing the legends set forth in Exhibits B-1 and B-2. The aggregate principal amount of the
Global Security may from time to time be increased or decreased by adjustments made on the records
of the Trustee, as custodian for the Depositary, as hereinafter provided; provided, that in no
event shall the aggregate principal amount of the Global Security or Global Securities exceed
$200,000,000 (or $230,000,000 if the Underwriters elect to purchase all of the Additional
Securities pursuant to the Option).

          Securities issued in exchange for interests in a Global Security pursuant to Section 2.15 may
be issued in the form of permanent certificated Securities in registered form in

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substantially the form set forth in Exhibit A (the “Physical Securities”) and, if applicable,
bearing any legends required by Section 2.17.

     Section 2.02 Execution and Authentication.

          One duly authorized Officer shall sign the Securities for the Company by manual or facsimile
signature.

          A Security’s validity shall not be affected by the failure of an Officer whose signature is on
such Security to hold, at the time the Security is authenticated, the same office at the Company.

          A Security shall not be valid until authenticated by the manual signature of the Trustee. The
signature shall be conclusive evidence that the Security has been authenticated under this
Indenture.

          Upon a written order of the Company signed by one Officer of the Company, the Trustee shall
authenticate Securities for original issue in the aggregate principal amount of $200,000,000 and
such additional principal amount, if any, as shall be determined pursuant to the next sentence of
this Section 2.02. Upon receipt by the Trustee of an Officer’s Certificate stating that the
Underwriters have elected to purchase from the Company a specified principal amount of Additional
Securities, not to exceed $30,000,000 pursuant to the Option, the Trustee shall authenticate and
deliver such specified principal amount of Additional Securities to or upon the written order of
the Company signed as provided in the immediately preceding sentence. Such Officer’s Certificate
must be received by the Trustee not later than the proposed date for delivering of such Additional
Securities. The aggregate principal amount of Securities outstanding at any time may not exceed
$200,000,000 (or $230,000,000 if the Underwriters have elected to purchase all of the Additional
Securities pursuant to the Option) except as provided in this Section 2.02.

          If a written order of the Company pursuant to this Section 2.02 has been, or simultaneously
is, delivered, any instructions by the Company to the Trustee with respect to endorsement, delivery
or redelivery of a Security issued in global form shall be in writing but need not comply with
Section 14.04 hereof and need not be accompanied by an Opinion of Counsel.

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

          Section 2.03 Registrar, Paying Agent and Conversion Agent.

          The Company shall maintain, or shall cause to be maintained, (i) an office or agency in the
Borough of Manhattan, The City of New York, where Securities may be presented for registration of
transfer or for exchange (“Registrar”), (ii) an office or agency in the Borough of Manhattan, The
City of New York, where Securities may be presented for payment (“Paying Agent”) and (iii) an
office or agency in the Borough of Manhattan, The City of New York, where Securities may be
presented for conversion (“Conversion Agent”). The Registrar shall keep a register of the
Securities and of their transfer and exchange. The Company may appoint

10

 

or change one or more co-Registrars, one or more additional paying agents and one or more
additional conversion agents without notice and may act in any such capacity on its own behalf.
The term “Registrar” includes any co-registrar; the term “Paying Agent” includes any additional
paying agent; and the term “Conversion Agent” includes any additional conversion agent.

          The Company shall enter into an appropriate agency agreement with any Agent not a party to
this Indenture. The agreement shall implement the provisions of this Indenture that relate to such
Agent. The Company shall notify the Trustee of the name and address of any such Agent not a party
to this Indenture. If the Company fails to maintain a Registrar, Paying Agent or Conversion Agent,
the Trustee shall act as such.

          The Company initially appoints the Trustee as Paying Agent, Registrar and Conversion Agent.

     Section 2.04 Paying Agent to Hold Money in Trust.

          Each Paying Agent shall hold in trust for the benefit of the Securityholders or the Trustee
all moneys held by the Paying Agent for the payment of the Securities, and shall notify the Trustee
of any Default by the Company in making any such payment. While any such Default continues, the
Trustee may require a Paying Agent to pay all money held by it to the Trustee. The Company at any
time may require a Paying Agent to pay all money held by it to the Trustee and account for any
funds so paid by it. Upon payment over to the Trustee, the Paying Agent shall have no further
liability for such money. If the Company acts as Paying Agent, it shall segregate and hold as a
separate trust fund all money held by it as Paying Agent.

     Section 2.05 Securityholder Lists.

          The Trustee shall preserve in as current a form as is reasonably practicable the most recent
list available to it of the names and addresses of Securityholders. If the Trustee is not the
Registrar, the Company shall furnish, or shall cause to be furnished, to the Trustee on or before
each interest payment date and at such other times as the Trustee may request in writing a list, in
such form and as of such date as the Trustee, may reasonably require, of the names and addresses of
Securityholders appearing in the security register of the Registrar.

     Section 2.06 Transfer and Exchange.

          Subject to Sections 2.15 and 2.16, if Securities are presented to the Registrar with a request
to register their transfer or to exchange them for an equal principal amount of Securities of other
authorized denominations, the Registrar shall register the transfer or make the exchange if its
requirements for such transaction are met. To permit registrations of transfer and exchanges, the
Trustee shall authenticate Securities at the Registrar’s request or upon the Trustee’s receipt of a
Company Order therefor. The Company or the Trustee, as the case may be, shall not be required to
register the transfer of or exchange any Security (i) for a period of twenty (20) calendar days
before selecting, pursuant to Section 3.03, Securities to be redeemed or (ii) during a period
beginning at the opening of business twenty (20) calendar days before the mailing of a notice of
redemption under Section 3.04 and ending at the close of business on the day of such mailing or
(iii) that has been selected for Redemption or for which a Purchase Notice has been delivered
pursuant to Section 3.08 or 3.09, and not withdrawn, in accordance with this

11

 

Indenture, except, in the case of a partial redemption, purchase or repurchase, that portion
of Securities not being redeemed or repurchased.

          No service charge shall be made for any transfer, exchange or conversion of Securities, but
the Company or the Trustee may require payment of a sum sufficient to cover any transfer tax or
similar governmental charge that may be imposed in connection with any transfer, exchange or
conversion of Securities, other than exchanges pursuant to Section 2.10, 9.05 or 10.02, or Article
III, not involving any transfer.

     Section 2.07 Replacement Securities.

          If the Holder of a Security claims that the Security has been mutilated, lost, destroyed or
wrongfully taken, the Company shall issue and the Trustee shall authenticate a replacement Security
upon surrender to the Trustee of the mutilated Security, or upon delivery to the Trustee of
evidence of the loss, destruction or theft of the Security satisfactory to the Trustee and the
Company. In the case of a lost, destroyed or wrongfully taken Security, if required by the Trustee
or the Company, an indemnity bond must be provided by the Holder that is reasonably satisfactory to
the Trustee and the Company to indemnify and hold harmless the Company and the Trustee from any
loss which any of them may suffer if such Security is replaced. The Trustee and the Company may
charge such Holder for their expenses in replacing a Security.

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

          Upon the issuance of any new Securities under this Section 2.07, the Company may require the
payment of a sum sufficient to cover any tax, assessment or other governmental charge that may be
imposed in relation thereto and any other reasonable expenses (including the reasonable fees and
expenses of the Trustee or the Registrar) connected therewith.

          Every replacement Security is an additional obligation of the Company only as provided in
Section 2.08.

     Section 2.08 Outstanding Securities.

          Securities outstanding at any time are all the Securities authenticated by the Trustee except
for those converted, those cancelled by it, those delivered to it for cancellation and those
described in this Section 2.08 as not outstanding. Except to the extent provided in Section 2.09,
a Security does not cease to be outstanding because the Company or one of its Subsidiaries or
Affiliates holds the Security.

          If a Security is replaced pursuant to Section 2.07, it ceases to be outstanding unless the
Trustee receives proof satisfactory to it, or a court holds, that the replaced Security is held by
a “protected purchaser,” as that term is defined in the New York Uniform Commercial Code.

12

 

          If the Paying Agent (other than the Company) holds on an Option Purchase Date, Redemption
Date, Fundamental Change Repurchase Date or Maturity Date, money sufficient to pay the aggregate
Option Purchase Price, Redemption Price, Fundamental Change Repurchase Price or principal amount,
as the case may be, with respect to all Securities to be redeemed, purchased or paid upon Purchase
at Holder’s Option, Redemption, Repurchase Upon Fundamental Change or maturity, as the case may be,
in each case plus, if applicable, accrued and unpaid interest, if any, payable as herein provided
upon Purchase at Holder’s Option, Redemption, Repurchase Upon Fundamental Change or maturity, then
(unless there shall be a Default in the payment of such aggregate Option Purchase Price, Redemption
Price, Fundamental Change Repurchase Price or principal amount, or of such accrued and unpaid
interest), except as otherwise provided herein, on and after such date such Securities shall be
deemed to be no longer outstanding, interest on such Securities shall cease to accrue, and such
Securities shall be deemed paid whether or not such Securities are delivered to the Paying Agent.
Thereafter, all rights of the Holders of such Securities shall terminate with respect to such
Securities, other than the right to receive the Option Purchase Price, Redemption Price,
Fundamental Change Repurchase Price or principal amount, as the case may be, plus, if applicable,
such accrued and unpaid interest, in accordance with this Indenture. Notwithstanding the foregoing
provisions of this paragraph, a Holder shall be entitled to convert a Security on the Maturity
Date, provided such Security has not been surrendered for payment upon maturity.

          If a Security is converted in accordance with Article X, then, from and after the time of such
conversion on the Conversion Date, such Security shall cease to be outstanding, and interest, if
any, shall cease to accrue on such Security unless there shall be a Default in the payment or
delivery of the consideration payable hereunder upon such conversion.

     Section 2.09 Securities Held by the Company or an Affiliate.

          In determining whether the Holders of the required aggregate principal amount of Securities
have concurred in any direction, waiver or consent, Securities owned by the Company or any of its
Subsidiaries or Affiliates shall be considered as though not outstanding, except that, for the
purposes of determining whether a Responsible Officer of the Trustee shall be protected in relying
on any such direction, waiver or consent, only Securities which the Trustee knows are so owned
shall be so disregarded. Securities so owned which have been pledged in good faith may be
considered to be outstanding for purposes of this Section 2.09 if the pledgee establishes, to the
satisfaction of the Trustee the pledgee’s right to concur with respect to such Securities and that
the pledgee is not, and is not acting at the direction or on behalf of, the Company, any other
obligor on the Securities, an Affiliate of the Company or an affiliate of any such other obligor.
In the event of a dispute as to whether the pledgee has established the foregoing, the Trustee may
rely on the advice of counsel or on an Officer’s Certificate.

     Section 2.10 Temporary Securities.

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

13

 

Order, shall authenticate definitive Securities in exchange for temporary Securities. Until
so exchanged, each temporary Security shall in all respects be entitled to the same benefits under
this Indenture as definitive Securities, and such temporary Security shall be exchangeable for
definitive Securities in accordance with the terms of this Indenture.

     Section 2.11  Purchase and Cancellation.

          The Company may, to the extent permitted by law, purchase Securities in the open market or by
tender offer at any price or by private agreement. The Company may, at its option, and to the
extent permitted by law, reissue, resell or surrender to the Trustee for cancellation any
Securities the Company purchases in this manner. Securities surrendered to the Trustee for
cancellation may not be reissued or resold and shall be promptly cancelled.

          The Company at any time may deliver Securities to the Trustee for cancellation. The
Registrar, Paying Agent and Conversion Agent shall forward to the Trustee any Securities
surrendered to them for transfer, exchange, payment or conversion. The Trustee shall promptly
cancel all Securities surrendered for transfer, exchange, payment, conversion or cancellation in
accordance with its customary procedures. The Company may not issue new Securities to replace
Securities that it has paid or delivered to the Trustee for cancellation or that any Securityholder
has converted pursuant to Article X. All cancelled Securities held by the Trustee shall be
destroyed, and certification of their destruction shall be delivered by the Trustee to the Company
unless the Company shall, by a Company Order, direct that cancelled Securities be returned to it.

     Section 2.12 Defaulted Interest.

          If and to the extent the Company defaults in a payment of interest on the Securities, the
Company shall pay in cash the defaulted interest in any lawful manner plus, to the extent not
prohibited by applicable statute or case law, interest on such defaulted interest at the rate
provided in the Securities. The Company may pay the defaulted interest (plus interest on such
defaulted interest) to the persons who are Securityholders on a subsequent special record date.
The Company shall fix such record date and payment date. At least fifteen (15) calendar days
before the record date, the Company shall mail to Securityholders a notice that states the record
date, payment date and amount of interest to be paid. Upon the due payment in full, interest shall
no longer accrue on such defaulted interest pursuant to this Section 2.12.

     Section 2.13 CUSIP Numbers.

          The Company in issuing the Securities may use one or more “CUSIP” numbers, and, if so, the
Trustee shall use the CUSIP numbers in notices of redemption or exchange as a convenience to
Holders; provided, however, that no representation is hereby deemed to be made by the Trustee as to
the correctness or accuracy of the CUSIP numbers printed on the notice or on the Securities;
provided further, that reliance may be placed only on the other identification numbers printed on
the Securities, and the effectiveness of any such notice shall not be affected by any defect in, or
omission of, such CUSIP numbers. The Company shall promptly notify the Trustee of any change in
the CUSIP numbers.

14

 

     Section 2.14 Deposit of Moneys.

          Prior to 11:00 A.M., New York City time, on each interest payment date, Maturity Date,
Redemption Date, Option Purchase Date or Fundamental Change Repurchase Date, the Company shall have
deposited with a Paying Agent (or, if the Company is acting as its own Paying Agent, shall have
segregated and shall hold in trust in accordance with Section 2.04) money, in funds immediately
available on such date, sufficient to make cash payments, if any, due on such interest payment
date, Maturity Date, Redemption Date, Option Purchase Date or Fundamental Change Repurchase Date,
as the case may be, in a timely manner which permits the Paying Agent to remit payment to the
Holders on such interest payment date, Maturity Date, Redemption Date, Option Purchase Date or
Fundamental Change Repurchase Date, as the case may be.

     Section 2.15 Book-Entry Provisions for Global Securities.

          (a) The Global Securities initially shall (i) be registered in the name of the Depositary or
the nominee of the Depositary, (ii) be delivered to the Trustee as custodian for the Depositary and
(iii) bear legends as set forth in Section 2.17.

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

          (b) Transfers of Global Securities shall be limited to transfers in whole, but not in part, to
the Depositary, its successors or their respective nominees. In addition, Physical Securities
shall be transferred to all beneficial owners, as identified by the Depositary, in exchange for
their beneficial interests in Global Securities only if (i) the Depositary notifies the Company
that the Depositary is unwilling or unable to continue as depositary for any Global Security (or
the Depositary ceases to be a “clearing agency” registered under Section 17A of the Exchange Act)
and, in either case, a successor Depositary is not appointed by the Company within ninety (90) days
of such notice or cessation or (ii) an Event of Default has occurred and is continuing and the
Registrar has received a written request from the Depositary to issue Physical Securities.

          (c) In connection with the transfer of a Global Security in its entirety to beneficial owners
pursuant to Section 2.15(b), such Global Security shall be deemed to be surrendered to the Trustee
for cancellation, and the Company shall execute, and the Trustee shall upon written instructions
from the Company authenticate and deliver, to each beneficial owner identified by the Depositary in
exchange for its beneficial interest in such Global Security, an equal aggregate principal amount
of Physical Securities of authorized denominations.

15

 

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

     Section 2.16 Special Transfer Provisions.

          Notwithstanding any other provisions of this Indenture, but except as provided in Section
2.15(b), a Global Security may not be transferred except as a whole by the Depositary to a nominee
of the Depositary or by a nominee of the Depositary to the Depositary or another nominee of the
Depositary or by the Depositary or any such nominee to a successor Depositary or a nominee of such
successor Depositary.

          The Registrar shall retain copies of all letters, notices and other written communications
received pursuant to Section 2.15 or this Section 2.16 for the period required by the TIA and the
Exchange Act. The Company shall have the right to inspect and make copies of all such letters,
notices or other written communications at any reasonable time upon the giving of reasonable
written notice to the Registrar.

     Section 2.17 Restrictive Legends.

          Each Global Security shall bear the legend as set forth in Exhibit B-1.

          Each Global Security and Physical Security shall bear the legend (the “Tax Legend”) set forth
in Exhibit B-2.

ARTICLE III.

REDEMPTION AND REPURCHASE

          Redemption of the Securities, as permitted by any provision of this Indenture, shall be made:

          (i) with respect to a repurchase at the Company’s option, in accordance with Sections 3.01 to
3.07 and paragraphs 6 and 7 of the Securities (a “Redemption”);

          (ii) with respect to a repurchase at the Holder’s option, in accordance with Section 3.08 and
paragraph 8 of the Securities (a “Purchase at Holder’s Option”); and

          (iii) with respect to any repurchase upon a Fundamental Change, in accordance with Section
3.09 and paragraph 9 of the Securities (a “Repurchase Upon Fundamental Change”),

          in each case in accordance with the applicable provisions of this Article III.

          The Company shall comply with all federal and state securities laws, and the applicable laws
of any foreign jurisdiction, in connection with any offer to sell or solicitations of offers to buy
Securities pursuant to this Article III, including, to the extent applicable, complying

16

 

with the provisions of Rule 13e-4 and Regulation 14E under the Exchange Act and filing a
Schedule TO or any other required schedule under the Exchange Act or other applicable laws.

     Section 3.01 Right of Redemption.

          The Company shall have the right, at the Company’s option, at any time, and from time to time,
on a Redemption Date on or after October 1, 2011, to redeem all or any part of the Securities at a
price payable in cash equal to the Redemption Price plus accrued and unpaid interest, if any, to,
but excluding, the Redemption Date; provided, however, that in no event shall any Redemption Date
be a Legal Holiday; provided, further, that if the Redemption Date with respect to a Security is
after the close of business on a record date for the payment of an installment of interest and on
or before the related interest payment date, then accrued and unpaid interest to, but excluding,
such interest payment date shall be paid, on such interest payment date, to the Holder of record of
such Security (without any surrender of such Security by such Holder) at the close of business on
such record date, and the Holder surrendering such Security for Redemption shall receive only the
Redemption Price and shall not be entitled to any such interest unless such Holder was also the
Holder of record of such Security at the close of business on such record date; provided, further,
that the Company shall make at least 10 semi-annual interest payments (including the interest
payments on April 1, 2007 and October 1, 2011) in the full amount required by this Indenture with
respect to the Securities prior to redeeming any Securities pursuant to this Section 3.01.

          Securities in denominations larger than $1,000 principal amount may be redeemed in part but
only in integral multiples of $1,000 principal amount.

     Section 3.02 Notices to Trustee.

          If the Company elects to redeem Securities pursuant to Section 3.01 and paragraph 6 of the
Securities, it shall notify the Trustee of the Redemption Date, the applicable provision of this
Indenture pursuant to which the Redemption is to be made and the aggregate principal amount of
Securities to be redeemed, which notice shall be provided to the Trustee by the Company at least
fifteen (15) days prior to the mailing, in accordance with Section 3.04, of the notice of
Redemption (unless a shorter notice period shall be satisfactory to the Trustee).

     Section 3.03 Selection of Securities to be Redeemed.

          If the Company has elected to redeem less than all the Securities pursuant to Section 3.01 and
paragraph 6 of the Securities, the Trustee shall, within five (5) Business Days after receiving the
notice specified in Section 3.02, select the Securities to be redeemed by lot, on a pro rata basis
or in accordance with any other method the Trustee considers fair and appropriate. The Trustee
shall make such selection from Securities then outstanding and not already to be redeemed by virtue
of having been previously called for Redemption. The Trustee may select for Redemption portions of
the principal amount of Securities that have denominations larger than $1,000 principal amount.
Securities and portions of them the Trustee selects for Redemption shall be in amounts of $1,000
principal amount or integral multiples of $1,000 principal amount. The Trustee shall promptly
notify the Company in writing of the Securities selected for Redemption and the principal amount
thereof to be redeemed.

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          The Registrar need not register the transfer of or exchange any Securities that have been
selected for Redemption, except the unredeemed portion of the Securities being redeemed in part.
As provided in Section 2.06, the Registrar need not register the transfer of or exchange any
Security for a period of twenty (20) days before selecting, pursuant to this Section 3.03,
Securities to be redeemed.

     Section 3.04 Notice of Redemption.

          At least thirty (30) days but not more than sixty (60) days before a Redemption Date, the
Company shall mail, or cause to be mailed, by first-class mail a notice of Redemption to each
Holder whose Securities are to be redeemed, at the address of such Holder appearing in the security
register.

          The notice shall identify the Securities and the aggregate principal amount thereof to be
redeemed pursuant to the Redemption and shall state:

          (i) the Redemption Date;

          (ii) the Redemption Price plus, if applicable, accrued and unpaid interest, if any, to, but
excluding, the Redemption Date;

          (iii) the Conversion Rate and the Conversion Price;

          (iv) the names and addresses of the Paying Agent and the Conversion Agent;

          (v) that the right to convert the Securities called for Redemption will terminate at the close
of business on the Business Day immediately preceding the Redemption Date, unless there shall be a
Default in the payment of the Redemption Price or accrued and unpaid interest, if any, payable as
provided in this Indenture upon Redemption;

          (vi) that Holders who want to convert Securities must satisfy the requirements of Article X;

          (vii) the paragraph of the Securities pursuant to which the Securities are to be redeemed;

          (viii) that Securities called for Redemption must be surrendered to the Paying Agent to
collect the Redemption Price plus, if applicable, accrued and unpaid interest, if any, payable as
herein provided upon Redemption;

          (ix) that, unless there shall be a Default in the payment of the Redemption Price or accrued
and unpaid interest, if any, payable as herein provided upon Redemption (including, where the
Redemption Date is after a record date for the payment of an installment of interest and on or
before the related interest payment date, the payment, on such interest payment date, of accrued
and unpaid interest to, but excluding, such interest payment date to the Holder of record at the
close of business on such record date), interest on Securities called for Redemption ceases to
accrue on and after the Redemption Date, except as otherwise provided herein, and all rights of the
Holders of such Securities shall terminate on and after the Redemption Date, other

18

 

than the right to receive, upon surrender of such Securities and in accordance with this
Indenture, the amounts due hereunder on such Securities upon Redemption (and the rights of the
Holder(s) of record of such Securities to receive, on the applicable interest payment date, accrued
and unpaid interest in accordance herewith in the event the Redemption Date is after a record date
for the payment of an installment of interest and on or before the related interest payment date);
and

          (x) the CUSIP number or numbers, as the case may be, of the Securities.

          The right, pursuant to Article X, to convert Securities called for Redemption shall terminate
at the close of business on the Business Day immediately preceding the Redemption Date, unless
there shall be a Default in the payment of the Redemption Price or accrued and unpaid interest, if
any, payable as herein provided upon Redemption.

          At the Company’s request, upon reasonable prior notice, the Trustee shall mail the notice of
Redemption in the Company’s name and at the Company’s expense; provided, however, that the form and
content of such notice shall be prepared by the Company.

     Section 3.05 Effect of Notice of Redemption.

          Once notice of Redemption is mailed, Securities called for Redemption become due and payable
on the Redemption Date at the specified Redemption Price (together with accrued and unpaid
interest, if any, payable as provided herein) and, on and after such Redemption Date (unless there
shall be a Default in the payment of such consideration), except as otherwise provided herein, such
Securities shall cease to bear interest, and all rights of the Holders of such Securities shall
terminate, other than the right to receive such consideration upon surrender of such Securities to
the Paying Agent.

          If any Security shall not be fully and duly paid in accordance herewith upon Redemption, the
principal of, and accrued and unpaid interest on, such Security shall, until paid, bear interest at
the rate borne by such Security on the principal amount of such Security, and such Security shall
continue to be convertible pursuant to Article X.

          Notwithstanding anything herein to the contrary, there shall be no purchase of any Securities
pursuant to a Redemption if there has occurred (prior to, on or after, as the case may be, the
mailing of the notice of Redemption specified in Section 3.04) and is continuing an Event of
Default (other than a Default in the payment of the consideration payable as herein provided upon
Redemption). The Paying Agent will promptly return to the respective Holders thereof any
Securities held by it during the continuance of such an Event of Default.

     Section 3.06 Deposit of Redemption Price.

          Prior to 11:00 A.M., New York City time on the Redemption Date, the Company shall deposit with
a Paying Agent (or, if the Company is acting as its own Paying Agent, shall have segregated and
shall hold in trust in accordance with Section 2.04) money, in funds immediately available on the
Redemption Date, sufficient to pay the consideration payable as herein provided upon Redemption
with respect to all Securities to be redeemed on that date. The Paying Agent shall return to the
Company, as soon as practicable, any money not required for that purpose.

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     Section 3.07 Securities Redeemed in Part.

          Any Security to be submitted for Redemption only in part shall be delivered pursuant to
Section 3.05 (with, if the Company or the Trustee so requires, due endorsement by, or a written
instrument of transfer in form satisfactory to the Company and the Trustee duly executed by the
Holder thereof or its attorney duly authorized in writing with a medallion guarantee), and the
Company shall execute, and the Trustee shall authenticate and make available for delivery to the
Holder of such Security without service charge, a new Security or Securities, of any authorized
denomination(s) as requested by such Holder, of the same tenor and in aggregate principal amount
equal to the portion of such Security not submitted for Redemption.

          If any Security selected for partial Redemption is converted in part, the principal of such
Security subject to Redemption shall be reduced by the principal amount of such Security that is
converted.

     Section 3.08 Purchase of Securities at Option of the Holder.

          (a) At the option of the Holder thereof, Securities (or portions thereof that are integral
multiples of $1,000 in principal amount) shall be purchased by the Company pursuant to this Section
3.08 and paragraph 8 of the Securities on October 1, 2011, October 1, 2016 and October 1, 2021
(each, an “Option Purchase Date”), at a purchase price, payable in cash, equal to one hundred
percent (100%) of the principal amount of the Securities (or such portions thereof) to be so
purchased (the “Option Purchase Price”), plus accrued and unpaid interest, if any, to, but
excluding, the applicable Option Purchase Date (provided, that if such Option Purchase Date is
after the close of business on a record date for the payment of an installment of interest and on
or before the related interest payment date, then such accrued and unpaid interest shall be paid,
on such interest payment date, to the Holder of record of such Securities (without any surrender of
such Securities by such Holder) at the close of business on such record date and the Holder
surrendering such Security for repurchase shall receive only the Option Purchase Price and shall
not be entitled to any such interest unless such Holder was also the Holder of record of such
Security at the close of business on such record date), upon:

          (i) delivery to the Company (if it is acting as its own Paying Agent), or to a Paying Agent
designated by the Company for such purpose in the Option Purchase Notice, by such Holder, at any
time from the opening of business on the date that is twenty (20) Business Days prior to the
applicable Option Purchase Date until the close of business on the Business Day immediately
preceding the applicable Option Purchase Date, of a Purchase Notice, in the form set forth in the
Securities or any other form of written notice substantially similar thereto, in each case, duly
completed and signed, with appropriate signature guarantee, stating:

     (A) the certificate number(s) of the Securities which the Holder will deliver
to be purchased, if such Securities are in certificated form;

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

20

 

     (C) that such principal amount of Securities are to be purchased as of the
applicable Option Purchase Date pursuant to the terms and conditions specified in
paragraph 8 of the Securities and Section 3.08 of this Indenture; and

          (ii) delivery to the Company (if it is acting as its own Paying Agent), or to a Paying Agent
designated by the Company for such purpose in the Option Purchase Notice, at any time after
delivery of such Purchase Notice, of such Securities (together with all necessary endorsements),
such delivery being a condition to receipt by the Holder of the Option Purchase Price therefor plus
accrued and unpaid interest, if any, payable as herein provided upon Purchase at Holder’s Option
(provided, however, that the Holder of record of such Securities on the record date immediately
preceding such Option Purchase Date need not surrender such Securities in order to be entitled to
receive, on the Option Purchase Date, the accrued and unpaid interest due thereon).

          If such Securities are held in book-entry form through the Depositary, the Purchase Notice
shall comply with applicable procedures of the Depositary.

          Upon delivery of Physical Securities to the Company (if it is acting as its own Paying Agent)
or such Paying Agent, such Holder shall be entitled to receive, upon request, from the Company or
such Paying Agent, as the case may be, a nontransferable receipt of deposit evidencing such
delivery.

          Notwithstanding anything herein to the contrary, any Holder that has delivered the Purchase
Notice contemplated by this Section 3.08(a) to the Company (if it is acting as its own Paying
Agent) or to a Paying Agent designated by the Company for such purpose in the Option Purchase
Notice shall have the right to withdraw such Purchase Notice by delivery, at any time prior to the
close of business on the Business Day immediately preceding the applicable Option Purchase Date, of
a written notice of withdrawal to the Company (if acting as its own Paying Agent) or the Paying
Agent, which notice shall contain the information specified in Section 3.08(b)(viii).

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

          (b) The Company shall give notice (the “Option Purchase Notice”) on a date not less than
twenty (20) Business Days prior to each Option Purchase Date to each Holder at its address shown in
the register of the Registrar and to each beneficial owner as required by applicable law. Such
notice shall state:

          (i) the Option Purchase Price plus accrued and unpaid interest, if any, to, but excluding,
such Option Purchase Date and the Conversion Rate;

          (ii) the Conversion Rate then applicable to the Securities;

          (iii) the names and addresses of the Paying Agent and the Conversion Agent;

          (iv) that Securities with respect to which a Purchase Notice is given by a Holder may be
converted pursuant to Article X, if otherwise convertible in accordance with

21

 

          Article X, only if such Purchase Notice has been withdrawn in accordance with this Section
3.08 or if there shall be a Default in the payment of such Option Purchase Price or in accrued and
unpaid interest, if any, payable as herein provided upon Purchase at Holder’s Option;

          (v) that Securities (together with any necessary endorsements) must be surrendered to the
Paying Agent to collect payment of the Option Purchase Price plus (if such Holder was the Holder of
record of the applicable Security at the close of business on the record date immediately preceding
the Option Purchase Date) accrued and unpaid interest, if any, payable as herein provided upon
Purchase at Holder’s Option;

          (vi) that the Option Purchase Price, plus accrued and unpaid interest, if any, to, but
excluding, such Option Purchase Date, for any Security as to which a Purchase Notice has been given
and not withdrawn will be paid as promptly as practicable, but in no event later than the third
Business Day after the later of such Option Purchase Date or the time of delivery of the Security
as described in clause (v) above; provided, however, that such accrued and unpaid interest shall be
paid, on the applicable interest payment date, to the Holder of record of such Security at the
close of business on the record date immediately preceding such Option Purchase Date;

          (vii) the procedures the Holder must follow to exercise rights under this Section 3.08
(including the name and address of the Paying Agent) and a brief description of those rights;

          (viii) that a Holder will be entitled to withdraw its election in the Purchase Notice if the
Company (if acting as its own Paying Agent) or the Paying Agent receives, at any time prior to the
close of business on the Business Day immediately preceding the applicable Option Purchase Date, or
such longer period as may be required by law, a letter, telegram or facsimile transmission (with
confirmation of good transmission thereof) setting forth (I) the name of such Holder, (II) a
statement that such Holder is withdrawing its election to have Securities purchased by the Company
on such Option Purchase Date pursuant to a Purchase at Holder’s Option, (III) the certificate
number(s) of such Securities to be so withdrawn, if such Securities are in certificated form, (IV)
the principal amount of the Securities of such Holder to be so withdrawn, which amount must be
$1,000 or an integral multiple thereof and (V) the principal amount, if any, of the Securities of
such Holder that remain subject to the Purchase Notice delivered by such Holder in accordance with
this Section 3.08, which amount must be $1,000 or an integral multiple thereof;

          (ix) that on and after the applicable Option Purchase Date (unless there shall be a Default in
the payment of the consideration payable as herein provided upon a Purchase at Holder’s Option),
interest on Securities subject to Purchase at Holder’s Option will cease to accrue, and all rights
of the Holders of such Securities shall terminate, other than the right to receive, in accordance
herewith, the consideration payable as herein provided upon a Purchase at Holder’s Option; and

          (x) the CUSIP number or numbers, as the case may be, of the Securities.

22

 

          At the Company’s request, upon reasonable prior notice, the Trustee shall mail such Option
Purchase Notice in the Company’s name and at the Company’s expense; provided, however, that the
form and content of such Option Purchase Notice shall be prepared by the Company.

          No failure of the Company to give an Option Purchase Notice shall limit any Holder’s right
pursuant hereto to exercise its rights to require the Company to purchase such Holder’s Securities
pursuant to a Purchase at Holder’s Option.

          (c) Subject to the provisions of this Section 3.08, the Company shall pay, or cause to be
paid, the Option Purchase Price, plus accrued and unpaid interest, if any, to, but excluding, the
applicable Option Purchase Date, with respect to each Security subject to Purchase at Holder’s
Option to the Holder thereof as promptly as practicable, but in no event later than the third (3rd)
Business Day after the later of the applicable Option Purchase Date and the time such Security
(together with all necessary endorsements) is surrendered to the Paying Agent; provided, however,
that such accrued and unpaid interest shall be paid, on the applicable interest payment date, to
the Holder of record of such Security at the close of business on the record date immediately
preceding such Option Purchase Date.

          (d) Prior to 11:00 A.M., New York City time on the applicable Option Purchase Date, the
Company shall deposit with a Paying Agent (or, if the Company is acting as its own Paying Agent,
shall have segregated and shall hold in trust in accordance with Section 2.04) money, in funds
immediately available on the applicable Option Purchase Date, sufficient to pay the Option Purchase
Price, plus accrued and unpaid interest, if any, to, but excluding, such Option Purchase Date, with
respect to all of the Securities that are to be purchased by the Company on such Option Purchase
Date pursuant to a Purchase at Holder’s Option. The Paying Agent shall return to the Company, as
soon as practicable, any money not required for that purpose.

          (e) Once the Purchase Notice has been duly delivered in accordance with this Section 3.08, the
Securities to be purchased pursuant to the Purchase at Holder’s Option shall, on the applicable
Option Purchase Date, become due and payable in accordance herewith, and, on and after such date
(unless there shall be a Default in the payment of the consideration payable as herein provided
upon a Purchase at Holder’s Option), such Securities shall cease to bear interest, and all rights
of the Holders of such Securities shall terminate, other than the right to receive, in accordance
herewith, the Option Purchase Price (together with accrued and unpaid interest, if any, payable as
provided herein).

          (f) Securities with respect to which a Purchase Notice has been duly delivered in accordance
with this Section 3.08 may be converted pursuant to Article X, if otherwise convertible in
accordance with Article X, only if such Purchase Notice has been withdrawn in accordance with this
Section 3.08 or if there shall be a Default in the payment of the consideration payable as herein
provided upon a Purchase at Holder’s Option.

          (g) If any Security subject to Purchase at Holder’s Option shall not be paid in accordance
herewith, the principal of, and accrued and unpaid interest on, such Security shall, until paid,
bear interest, payable in cash, at the rate borne by such Security on the principal

23

 

amount of such Security, and such Security shall continue to be convertible pursuant to
Article X.

          (h) Any Security which is to be submitted for Purchase at Holder’s Option only in part shall
be delivered pursuant to this Section 3.08 (with, if the Company or the Trustee so requires, due
endorsement by, or a written instrument of transfer in form satisfactory to the Company and the
Trustee duly executed by, the Holder thereof or its attorney duly authorized in writing, with a
medallion guarantee), and the Company shall execute, and the Trustee shall authenticate and make
available for delivery to the Holder of such Security without service charge, a new Security or
Securities, of any authorized denomination as requested by such Holder, of the same tenor and in
aggregate principal amount equal to the portion of such Security not submitted for Purchase at
Holder’s Option.

          (i) Notwithstanding anything herein to the contrary, there shall be no purchase of any
Securities pursuant to this Section 3.08 if there has occurred (prior to, on or after, as the case
may be, the giving, by the Holders of such Securities, of the required Purchase Notice) and is
continuing an Event of Default (other than a Default in the payment of the consideration payable as
herein provided upon a Purchase at Holder’s Option or a Default arising from the Company’s failure
to provide the applicable Option Purchase Notice). The Paying Agent will promptly return to the
respective Holders thereof any Securities held by it during the continuance of an Event of Default
(other than a Default in the payment of such consideration or arising from the Company’s failure to
provide the applicable Option Purchase Notice).

          Section 3.09 Repurchase at Option of Holder Upon a Fundamental Change.

          (a) In the event any Fundamental Change (as defined below) shall occur, each Holder of
Securities shall have the right (the “Fundamental Change Repurchase Right”), at such Holder’s
option, to require the Company to repurchase all of such Holder’s Securities (or portions thereof
that are integral multiples of $1,000 in principal amount), on a date selected by the Company (the
"Fundamental Change Repurchase Date”), which Fundamental Change Repurchase Date shall be no later
than thirty five (35) days, nor earlier than twenty (20) days, after the date the Fundamental
Change Notice (as defined below) is mailed in accordance with Section 3.09(b), at a price, payable
in cash, equal to one hundred percent (100%) of the principal amount of the Securities (or portions
thereof) to be so repurchased (the “Fundamental Change Repurchase Price”), plus accrued and unpaid
interest, if any, to, but excluding, the Fundamental Change Repurchase Date (provided, that if such
Fundamental Change Repurchase Date is after the close of business on a record date for the payment
of an installment of interest and on or before the related interest payment date, then the accrued
and unpaid interest, if any, to, but excluding, such interest payment date shall be paid, on such
interest payment date, to the Holder of record of such Securities at the close of business on such
record date (without any surrender of such Securities by such Holder), and the Holder surrendering
such Securities for repurchase shall receive only the Fundamental Change Repurchase Price and shall
not be entitled to any such accrued and unpaid interest unless such Holder was also the Holder of
record of such Securities at the close of business on such record date), upon:

          (i) delivery to the Company (if it is acting as its own Paying Agent), or to a Paying Agent
designated by the Company for such purpose in the Fundamental Change Notice,

24

 

no later than the close of business on the Business Day immediately preceding the Fundamental
Change Repurchase Date, of a Purchase Notice, in the form set forth in the Securities or any other
form of written notice substantially similar thereto, in each case, duly completed and signed, with
appropriate signature guarantee, stating:

          (A) the certificate number(s) of the Securities which the Holder will deliver
to be repurchased, if such Securities are in certificated form;

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

          (C) that such principal amount of Securities are to be repurchased pursuant to
the terms and conditions specified in paragraph 9 of the Securities and Section 3.09
of this Indenture; and

          (ii) delivery to the Company (if it is acting as its own Paying Agent), or to a Paying Agent
designated by the Company for such purpose in the Fundamental Change Notice, at any time after the
delivery of such Purchase Notice, of such Securities (together with all necessary endorsements)
with respect to which the Fundamental Change Repurchase Right is being exercised.

          If such Securities are held in book-entry form through the Depositary, the Purchase Notice
shall comply with applicable procedures of the Depositary.

          Upon delivery of Physical Securities to the Company (if it is acting as its own Paying Agent)
or such Paying Agent, such Holder shall be entitled to receive, upon request, from the Company or
such Paying Agent, as the case may be, a nontransferable receipt of deposit evidencing such
delivery.

          Notwithstanding anything herein to the contrary, any Holder that has delivered the Purchase
Notice contemplated by this Section 3.09(a) to the Company (if it is acting as its own Paying
Agent) or to a Paying Agent designated by the Company for such purpose in the Fundamental Change
Notice shall have the right to withdraw such Purchase Notice by delivery, at any time prior to the
close of business on the Business Day immediately preceding the Fundamental Change Repurchase Date,
of a written notice of withdrawal to the Company (if acting as its own Paying Agent) or the Paying
Agent, which notice shall contain the information specified in Section 3.09(b)(xi).

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

          (b) Within twenty (20) Business Days after the occurrence of a Fundamental Change, the Company
shall mail, or cause to be mailed, to all Holders of the Securities at their addresses shown in the
register of the Registrar, and to beneficial owners as required by applicable law, a notice (the
"Fundamental Change Notice”) of the occurrence of such Fundamental Change and the Fundamental
Change Repurchase Right arising as a result thereof. The Company shall deliver a copy of the
Fundamental Change Notice to the Trustee and shall

25

 

publicly announce, through a reputable national newswire service, and publish on the Company’s
website, such Fundamental Change Notice.

          Each Fundamental Change Notice shall state:

          (i) the events causing the Fundamental Change;

          (ii) the date of such Fundamental Change;

          (iii) the Fundamental Change Repurchase Date;

          (iv) the last date by which the Fundamental Change Repurchase Right must be exercised;

          (v) the Fundamental Change Repurchase Price plus accrued and unpaid interest, if any, to, but
excluding, the Fundamental Change Repurchase Date;

          (vi) the names and addresses of the Paying Agent and the Conversion Agent;

          (vii) a description of the procedures which a Holder must follow to exercise the Fundamental
Change Repurchase Right;

          (viii) that, in order to exercise the Fundamental Change Repurchase Right, the Securities
(together with all necessary endorsements) must be surrendered for payment of the Fundamental
Change Repurchase Price plus accrued and unpaid interest, if any, payable as herein provided upon
Repurchase Upon Fundamental Change;

          (ix) that the Fundamental Change Repurchase Price, plus accrued and unpaid interest, if any,
to, but excluding, the Fundamental Change Repurchase Date, for any Security as to which a Purchase
Notice has been given and not withdrawn will be paid as promptly as practicable, but in no event
more than the third (3rd) Business Day after the later of such Fundamental Change Repurchase Date
and the time of delivery of the Security (together with all necessary endorsements) as described in
clause (viii) above; provided, however, that if such Fundamental Change Repurchase Date is after a
record date for the payment of an installment of interest and on or before the related interest
payment date, then the accrued and unpaid interest, if any, to, but excluding, such interest
payment date will be paid on such interest payment date to the Holder of record of such Security at
the close of business on such record date (without any surrender of such Securities by such
Holder), and the Holder surrendering such Security for repurchase shall receive only the
Fundamental Change Repurchase Price and shall not be entitled to any such accrued and unpaid
interest unless such Holder was also the Holder of record of such Security at the close of business
on such record date;

          (x) that, except as otherwise provided herein with respect to a Fundamental Change Repurchase
Date that is after a record date for the payment of an installment of interest and on or before the
related interest payment date, on and after such Fundamental Change Repurchase Date (unless there
shall be a Default in the payment of the consideration payable as herein provided upon Repurchase
Upon Fundamental Change), interest on Securities subject to Repurchase Upon Fundamental Change will
cease to accrue, and all rights of the Holders of such

26

 

Securities shall terminate, other than the right to receive, in accordance herewith, the
consideration payable as herein provided upon Repurchase Upon Fundamental Change;

          (xi) that a Holder will be entitled to withdraw its election in the Purchase Notice if the
Company (if acting as its own Paying Agent), or the Paying Agent receives, prior to the close of
business on the Business Day immediately preceding the Fundamental Change Repurchase Date, or such
longer period as may be required by law, a letter, telegram or facsimile transmission (receipt of
which is confirmed and promptly followed by a letter) setting forth (I) the name of such Holder,
(II) a statement that such Holder is withdrawing its election to have Securities purchased by the
Company on such Fundamental Change Repurchase Date pursuant to a Repurchase Upon Fundamental
Change, (III) the certificate number(s) of such Securities to be so withdrawn, if such Securities
are in certificated form, (IV) the principal amount of the Securities of such Holder to be so
withdrawn, which amount must be $1,000 or an integral multiple thereof and (V) the principal
amount, if any, of the Securities of such Holder that remain subject to the Purchase Notice
delivered by such Holder in accordance with this Section 3.09, which amount must be $1,000 or an
integral multiple thereof;

          (xii) the Conversion Rate and any adjustments to the Conversion Rate that will result from
such Fundamental Change;

          (xiii) that Securities with respect to which a Purchase Notice is given by a Holder may be
converted pursuant to Article X, if otherwise convertible in accordance with Article X, only if
such Purchase Notice has been withdrawn in accordance with this Section 3.09 or if there shall be a
Default in the payment of the Fundamental Change Repurchase Price or in the accrued and unpaid
interest, if any, payable as herein provided upon Repurchase Upon Fundamental Change; and

          (xiv) the CUSIP number or numbers, as the case may be, of the Securities.

          At the Company’s request, upon reasonable prior notice, the Trustee shall mail such
Fundamental Change Notice in the Company’s name and at the Company’s expense; provided, however,
that the form and content of such Fundamental Change Notice shall be prepared by the Company.

          No failure of the Company to give a Fundamental Change Notice shall limit any Holder’s right
pursuant hereto to exercise a Fundamental Change Repurchase Right.

          (c) Subject to the provisions of this Section 3.09, the Company shall pay, or cause to be
paid, the Fundamental Change Repurchase Price, plus accrued and unpaid interest, if any, to, but
excluding, the Fundamental Change Repurchase Date, with respect to each Security as to which the
Fundamental Change Repurchase Right shall have been exercised to the Holder thereof as promptly as
practicable, but in no event later than the third (3rd) Business Day after the later of the
Fundamental Change Repurchase Date and the time such Security (together with all necessary
endorsements) is surrendered to the Paying Agent; provided, however, that if such Fundamental
Change Repurchase Date is after a record date for the payment of an installment of interest and on
or before the related interest payment date, then the accrued and unpaid interest, if any, to, but
excluding, such interest payment date will be paid on such interest payment date to

27

 

the Holder of record of such Security at the close of business on such record date, and the
Holder surrendering such Security for repurchase shall receive only the Fundamental Change
Repurchase Price and shall not be entitled to any such accrued and unpaid interest unless such
Holder was also the Holder of record of such Security at the close of business on such record date.

          (d) Prior to 11:00 A.M., New York City time on a Fundamental Change Repurchase Date, the
Company shall deposit with a Paying Agent (or, if the Company is acting as its own Paying Agent,
shall have segregated and shall hold in trust in accordance with Section 2.04) money, in funds
immediately available on the Fundamental Change Repurchase Date, sufficient to pay the
consideration payable as herein provided upon Repurchase Upon Fundamental Change with respect to
all of the Securities that are to be repurchased by the Company on such Fundamental Change
Repurchase Date pursuant to a Repurchase Upon Fundamental Change. The Paying Agent shall return to
the Company, as soon as practicable, any money not required for that purpose.

          (e) Once the Fundamental Change Notice and the Purchase Notice have been duly given in
accordance with this Section 3.09, the Securities to be repurchased pursuant to a Repurchase Upon
Fundamental Change shall, on the Fundamental Change Repurchase Date, become due and payable in
accordance herewith, and, on and after such date (unless there shall be a Default in the payment of
the consideration payable as herein provided upon Repurchase Upon Fundamental Change), except as
otherwise provided herein with respect to a Fundamental Change Repurchase Date that is after a
record date for the payment of an installment of interest and on or before the related interest
payment date, such Securities shall cease to bear interest, and all rights of the Holders of such
Securities shall terminate, other than the right to receive, in accordance herewith, such
consideration.

          (f) Securities with respect to which a Purchase Notice has been duly delivered in accordance
with this Section 3.09 may be converted pursuant to Article X, if otherwise convertible in
accordance with Article X, only if such Purchase Notice has been withdrawn in accordance with this
Section 3.09 or if there shall be a Default in the payment of the consideration payable as herein
provided upon Repurchase Upon Fundamental Change.

          (g) If any Security shall not be paid upon surrender thereof for Repurchase Upon Fundamental
Change, the principal of, and accrued and unpaid interest on, such Security shall, until paid, bear
interest, payable in cash, at the rate borne by such Security on the principal amount of such
Security, and such Security shall continue to be convertible pursuant to Article X.

          (h) Any Security which is to be submitted for Repurchase Upon Fundamental Change only in part
shall be delivered pursuant to this Section 3.09 (with, if the Company or the Trustee so requires,
due endorsement by, or a written instrument of transfer in form satisfactory to the Company and the
Trustee duly executed by, the Holder thereof or its attorney duly authorized in writing, with a
medallion guarantee), and the Company shall execute, and the Trustee shall authenticate and make
available for delivery to the Holder of such Security without service charge, a new Security or
Securities, of any authorized denomination as requested by

28

 

such Holder, of the same tenor and in aggregate principal amount equal to the portion of such
Security not duly submitted for Repurchase Upon Fundamental Change.

          (i) Notwithstanding anything herein to the contrary, there shall be no purchase of any
Securities pursuant to this Section 3.09 if there has occurred (prior to, on or after, as the case
may be, the giving, by the Holders of such Securities, of the required Purchase Notice) and is
continuing an Event of Default (other than a Default in the payment of the consideration payable as
herein provided upon Repurchase Upon Fundamental Change or a Default arising from the Company’s
failure to provide the applicable Fundamental Change Notice). The Paying Agent will promptly
return to the respective Holders thereof any Securities held by it during the continuance of an
Event of Default (other than a Default in the payment of such consideration or arising from the
Company’s failure to provide the applicable Fundamental Change Notice).

          (j) As used herein and in the Securities, a “Fundamental Change” shall be deemed to have
occurred upon the occurrence of either a “Change in Control” or a “Termination of Trading.”

          (i) A “Change in Control” shall be deemed to have occurred at such time as:

     (A) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d)
of the Exchange Act) is or becomes the “beneficial owner” (as such term is used in
Rule 13d-3 under the Exchange Act), directly or indirectly, of fifty percent (50%)
or more of the total outstanding voting power of the Company’s Voting Stock (such an
event, an “Acquisition of Voting Control”); or

     (B) there occurs a sale, transfer, lease, conveyance or other disposition of
all or substantially all of the property or assets of the Company to any “person” or
“group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act),
including any group acting for the purpose of acquiring, holding, voting or
disposing of securities within the meaning of Rule 13d-5(b)(1) under the Exchange
Act; or

     (C) the Company consolidates with, or merges with or into, another person or
any person consolidates with, or merges with or into, the Company, unless either:

     (1) the persons that “beneficially owned” (as such term is used in Rule
13d-3 under the Exchange Act), directly or indirectly, the shares of the
Company’s Voting Stock immediately prior to such consolidation or merger
“beneficially own,” directly or indirectly, immediately after such
consolidation or merger, shares of the surviving or continuing corporation’s
Voting Stock representing at least a majority of the total outstanding
voting power of all outstanding classes of the Voting Stock of the surviving
or continuing corporation in substantially the same proportion as such
ownership immediately prior to such consolidation or merger; or

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     (2) both of the following conditions are satisfied (a transaction that
satisfies both of the conditions set forth in this clause (2), a “Listed
Stock Business Combination”): (x) at least ninety percent (90%) of the
consideration (other than cash payments for fractional shares or pursuant to
statutory appraisal rights) in such consolidation or merger consists of
common stock and any associated rights traded on a U.S. national securities
exchange or quoted on the Nasdaq Global Select Market (or which will be so
traded or quoted when issued or exchanged in connection with such
consolidation or merger), and, (y) as a result of such consolidation or
merger, the Securities become convertible into cash and the Daily Share
Amount, if any, which shall be payable at the Company’s option in cash, shares of such common stock and associated rights or a combination thereof;
or

     (D) the following persons cease for any reason to constitute a majority of the
Board of Directors:

     (1) individuals who on the Issue Date constituted the Board of
Directors; and

     (2)
any new directors whose election to the Board of Directors or whose
nomination for election by the Company’s shareholders was approved by at
least a majority of the directors of the Company then still in office who
either were directors of the Company whose election or nomination for
election was previously so approved or were directors of the Company on the
Issue Date; or

     (E) the Company is liquidated or dissolved or the holders of the Company’s
Capital Stock approve any plan or proposal for the liquidation or dissolution of the
Company.

          (ii) A “Termination of Trading” shall be deemed to occur if the Common Stock (or other common
stock into which the Securities are then convertible) is neither listed for trading on a U.S.
national securities exchange nor approved for trading on an established automated over-the-counter
trading market in the United States.

ARTICLE IV.

COVENANTS

     Section 4.01 Payment of Securities.

          The Company shall pay all amounts due with respect to the Securities on the dates and in the
manner provided in the Securities and this Indenture. All such amounts shall be considered paid on
the date due if the Paying Agent holds (or, if the Company is acting as Paying Agent, the Company
has segregated and holds in trust in accordance with Section 2.04) on that date money sufficient to
pay the amount then due with respect to the Securities (unless there shall be a Default in the
payment of such amounts to the respective Holder(s)). The Company

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will pay, in money of the United States that at the time of payment is legal tender for
payment of public and private debts, all amounts due in cash with respect to the Securities, which
amounts shall be paid (A) in the case of a Security that is in global form, by wire transfer of
immediately available funds to the account designated by the Depositary or its nominee; (B) in the
case of a Security that is held, other than in global form, by a Holder of more than five million
dollars ($5,000,000) in aggregate principal amount of Securities, by wire transfer of immediately
available funds to the account specified by such Holder or, if such Holder does not specify an
account, by mailing a check to the address of such Holder set forth in the register of the
Registrar; and (C) in the case of a Security that is held, other than in global form, by a Holder
of five million dollars ($5,000,000) or less in aggregate principal amount of Securities, by
mailing a check to the address of such Holder set forth in the register of the Registrar.

          The Company shall pay, in cash, interest on any overdue amount (including, to the extent
permitted by applicable law, overdue interest) at the rate borne by the Securities.

     Section 4.02 Maintenance of Office or Agency.

          The Company shall maintain, or cause to be maintained, in the Borough of Manhattan, the City
of New York, an office or agency (which may be an office of the Trustee or an affiliate of the
Trustee, Registrar or co-Registrar) where Securities may be surrendered for registration of
transfer or exchange, payment or conversion. The Company will give prompt written notice to the
Trustee of the location, and any change in the location, of such office or agency. If at any time
the Company shall fail to maintain, or fail to cause to maintain, any such required office or
agency or shall fail to furnish the Trustee with the address thereof, such presentations and
surrenders may be made or served at the applicable Corporate Trust Office of the Trustee. The
Company shall maintain, or cause to be maintained, in the Borough of Manhattan, the City of New
York, an office or agency where notices and demands to or upon the Company in respect of the
Securities and this Indenture may be served, provided that such office or agency may instead be at
the principal office of the Company located in the United States.

          The Company may also from time to time designate one or more other offices or agencies where
the Securities may be presented or surrendered for any or all such purposes and may from time to
time rescind such designations; provided, however, that no such designation or rescission shall in
any manner relieve the Company of its obligation to maintain an office or agency in the Borough of
Manhattan, the City of New York for such purposes. The Company shall give prompt written notice to
the Trustee of any such designation or rescission and of any change in the location of any such
other office or agency.

          The Company hereby designates the Corporate Trust Office of the Trustee as an agency of the
Company in accordance with Section 2.03.

     Section 4.03 Annual Reports.

          The Company shall comply with the provisions of TIA § 314(a), including but not limited to,
furnishing to the Trustee copies of the Company’s annual report to shareholders, containing audited
financial statements and any other financial reports the Company furnishes to its shareholders.

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     Section 4.04 Compliance Certificate.

          The Company shall deliver to the Trustee, within ninety (90) calendar days after the end of
each fiscal year of the Company, or, if earlier, by the date the Company is, or would be, required
to file with the SEC the Company’s annual report (whether on Form 10-K under the Exchange Act or
another appropriate form) for such fiscal year, a certificate of two (2) or more Officers, in the
form required by Section 14.05 stating whether or not the signatories to such certificate have
actual knowledge of any Default or Event of Default by the Company in performing any of its
obligations under this Indenture or the Securities. If such signatories do know of any such
Default or Event of Default, then such certificate shall describe the Default or Event of Default
and its status.

     Section 4.05 Stay, Extension and Usury Laws.

          The Company covenants (to the extent that it may lawfully do so) that it will not at any time
insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any
stay, extension or usury law wherever enacted, now or at any time hereafter in force, which may
affect the covenants or the performance of this Indenture; and the Company (in each case, to the
extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such
law, and covenants that it will not, by resort to any such law, hinder, delay or impede the
execution of any power herein granted to the Trustee, but will suffer and permit the execution of
every such power as though no such law has been enacted.

     Section 4.06 Corporate Existence.

          Subject to Article V, the Company will do or cause to be done all things necessary to preserve
and keep in full force and effect its corporate existence and the corporate existence of each of
its Subsidiaries, in accordance with the respective organizational documents of the Company and of
each Subsidiary, and the rights (charter and statutory), licenses and franchises of the Company and
its Subsidiaries; provided, however, that the Company shall not be required to preserve any such
right, license or franchise, or the corporate existence of any Subsidiary, if in the good faith
judgment of the Board of Directors (i) such preservation or existence is not material to the
conduct of business of the Company and (ii) the loss of such right, license or franchise or the
dissolution of such Subsidiary does not have a material adverse impact on the Holders.

     Section 4.07 Notice of Default.

          Upon the Company becoming aware of the occurrence of any Default or Event of Default, the
Company shall give prompt written notice of such Default or Event of Default, and any remedial
action proposed to be taken, to the Trustee.

     Section 4.08 Further Instruments And Acts.

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

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     Section 4.09 Payment of Taxes And Other Claims.

          The Company shall pay or discharge, or cause to be paid or discharged, before the same may
become delinquent, all taxes, assessments, and governmental charges required to be paid by the
Company or any Subsidiary and all stamp taxes and other duties, if any, which may be imposed by the
United States or any political subdivision thereof or therein in connection with the issuance,
transfer, exchange, conversion, redemption or repurchase of any Notes or with respect to this
Indenture; provided that, the Company, or the relevant Subsidiary, shall not be required to pay
or discharge or cause to be paid or discharged any such tax, assessment, or charge if the amount,
applicability or validity is being contested in good faith by appropriate proceedings.

ARTICLE V.

SUCCESSORS

Section 5.01 When Company may merge, etc.

          The Company shall not consolidate with, or merge with or into, or sell, transfer, lease,
convey or otherwise dispose of all or substantially all of the property or assets of the Company
to, another person, whether in a single transaction or series of related transactions, unless (i)
such other person is a corporation organized and existing under the laws of the United States of
America, any State thereof or the District of Columbia; (ii) such person assumes by supplemental
indenture all the obligations of the Company under the Securities and this Indenture; and (iii)
immediately after giving effect to such transaction or series of transactions, no Default or Event
of Default shall exist.

          The Company shall deliver to the Trustee prior to the consummation of the proposed transaction
an Officer’s Certificate to the foregoing effect and an Opinion of Counsel (which may rely upon
such Officer’s Certificate as to the absence of Defaults and Events of Default) stating that the
proposed transaction and such supplemental indenture will, upon consummation of the proposed
transaction, comply with this Indenture.

     Section 5.02 Successor Substituted.

          Upon any consolidation, merger or any sale, transfer, lease, conveyance or other disposition
of all or substantially all of the property or assets of the Company, the successor person formed
by such consolidation or into which the Company is merged or to which such sale, transfer, lease,
conveyance or other disposition is made shall succeed to, and, except in the case of a lease, be
substituted for, and may exercise every right and power of, and shall assume every duty and
obligation of, the Company under this Indenture with the same effect as if such successor had been
named as the Company herein. When the successor assumes all obligations of the Company hereunder,
except in the case of a lease, all obligations of the predecessor shall terminate.

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ARTICLE VI.

DEFAULTS AND REMEDIES

     Section 6.01 Events of Default.

          An “Event of Default” occurs if:

          (i) the Company fails to pay the principal of, or premium, if any, on, any Security when the
same becomes due and payable, whether at maturity, upon Redemption, on an Option Purchase Date with
respect to a Purchase at Holder’s Option, on a Fundamental Change Repurchase Date with respect to a
Repurchase Upon Fundamental Change or otherwise;

          (ii) the Company fails to pay an installment of interest (including, without limitation,
Contingent Interest if any) on any Security when due, if such failure continues for thirty (30)
days after the date when due;

          (iii) the Company fails to satisfy its conversion obligations upon exercise of a Holder’s
conversion rights pursuant hereto;

          (iv) the Company fails to timely provide a Fundamental Change Notice or an Option Purchase
Notice, as required by the provisions of this Indenture, or fails to timely provide any notice
pursuant to, and in accordance with, Section 10.14(d);

          (v) the Company fails to comply with any other term, covenant or agreement set forth in the
Securities or this Indenture and such failure continues for the period, and after the notice,
specified below in the last paragraph of this Section 6.01;

          (vi) the Company or any of its Subsidiaries defaults in the payment when due, after the
expiration of any applicable grace period, of principal of, or premium, if any, or interest on,
Indebtedness for money borrowed, in the aggregate principal amount then outstanding of twenty
million dollars ($20,000,000) or more, or the acceleration of Indebtedness of the Company or any of
its Subsidiaries for money borrowed in such aggregate principal amount or more so that it becomes
due and payable prior to the date on which it would otherwise become due and payable and such
default is not cured or waived, or such acceleration is not rescinded, within sixty (60) days after
notice to the Company by the Trustee or to the Company and the Trustee by Holders of at least
twenty five percent (25%) in the aggregate principal amount of the Securities then outstanding,
each in accordance with this Indenture;

          (vii) the Company or any of its Subsidiaries fails, within sixty (60) days, to pay, bond or
otherwise discharge any judgments or orders for the payment of money the total uninsured amount of
which for the Company or any of its Subsidiaries exceeds twenty million dollars ($20,000,000),
which are not stayed on appeal;

          (viii) the Company or any of its Significant Subsidiaries or any group of Subsidiaries that in
the aggregate would constitute a Significant Subsidiary of the Company, pursuant to, or within the
meaning of, any Bankruptcy Law, insolvency law, or other similar law now or hereafter in effect or
otherwise, either:

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     (A) commences a voluntary case,

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

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

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

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

     (A) is for relief against the Company or any of its Significant Subsidiaries or
any group of Subsidiaries that in the aggregate would constitute a Significant
Subsidiary of the Company in an involuntary case or proceeding, or adjudicates the
Company or any of its Significant Subsidiaries or any group of Subsidiaries that in
the aggregate would constitute a Significant Subsidiary of the Company insolvent or
bankrupt,

     (B) appoints a Custodian of the Company or any of its Significant Subsidiaries
or any group of Subsidiaries that in the aggregate would constitute a Significant
Subsidiary of the Company for all or substantially all of the property of the
Company or any such Significant Subsidiary or any group of Subsidiaries that in the
aggregate would constitute a Significant Subsidiary of the Company, as the case may
be, or

     (C) orders the winding up or liquidation of the Company or any of its
Significant Subsidiaries or any group of Subsidiaries that in the aggregate would
constitute a Significant Subsidiary of the Company,

and, in the case of each of the foregoing clauses (A), (B) and (C) of this Section 6.01(ix), the
order or decree remains unstayed and in effect for at least ninety (90) consecutive days.

          The term “Bankruptcy Law” means Title 11, U.S. Code or any similar U.S. Federal or State law
for the relief of debtors. The term “Custodian” means any receiver, trustee, assignee, liquidator
or similar official under any Bankruptcy Law.

          A Default under clause (v) above is not an Event of Default until (I) the Trustee notifies the
Company, or the Holders of at least twenty five percent (25%) in aggregate principal amount of the
Securities then outstanding notify the Company and the Trustee in writing, of the Default and (II)
the Default is not cured within ninety (90) days after receipt of such notice. Such notice must
specify the Default, demand that it be remedied and state that the notice is a “Notice of Default.”
If the Holders of at least twenty five percent (25%) in aggregate principal amount of the
outstanding Securities request the Trustee to give such notice on their behalf, the Trustee shall
do so. When a Default is cured, it ceases to exist for all purposes under this Indenture.

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     Section 6.02 Acceleration.

          If an Event of Default (excluding an Event of Default specified in Section 6.01(viii) or (ix)
with respect to the Company (but including an Event of Default specified in Section 6.01(viii) or
(ix) solely with respect to a Significant Subsidiary of the Company or any group of Subsidiaries
that in the aggregate would constitute a Significant Subsidiary of the Company)) occurs and is
continuing, the Trustee by notice to the Company, or the Holders of at least twenty five percent
(25%) in aggregate principal amount of the Securities then outstanding by notice to the Company and
the Trustee, may declare the Securities to be immediately due and payable in full. Upon such
declaration, the principal of, and any accrued and unpaid interest (including any Contingent
Interest) on, all Securities shall be due and payable immediately. If an Event of Default
specified in Section 6.01(viii) or (ix) with respect to the Company (excluding, for purposes of
this sentence, an Event of Default specified in Section 6.01(viii) or (ix) solely with respect to a
Significant Subsidiary of the Company or any group of Subsidiaries that in the aggregate would
constitute a Significant Subsidiary of the Company) occurs, the principal of, and accrued and
unpaid interest (including, without limitation, any Contingent Interest) on, all the Securities
shall ipso facto become and be immediately due and payable without any declaration or other act on
the part of the Trustee or any Holder. The Holders of a majority in aggregate principal amount of
the Securities then outstanding by written notice to the Trustee may rescind or annul an
acceleration and its consequences if (A) the rescission would not conflict with any order or
decree, (B) all existing Events of Default, except the nonpayment of principal or interest
(including, without limitation, Contingent Interest) that has become due solely because of the
acceleration, have been cured or waived and (C) all amounts due to the Trustee under Section 7.07
have been paid.

     Section 6.03 Other Remedies.

          Notwithstanding any other provision of this Indenture, if an Event of Default occurs and is
continuing, and a Responsible Officer of the Trustee has actual knowledge of such Event of Default,
the Trustee may pursue any available remedy by proceeding at law or in equity to collect the
payment of amounts due with respect to the Securities or to enforce the performance of any
provision of the Securities or this Indenture.

          The Trustee may maintain a proceeding even if it does not possess any of the Securities or
does not produce any of them in the proceeding. A delay or omission by the Trustee or any Holder
in exercising any right or remedy accruing upon an Event of Default shall not impair the right or
remedy or constitute a waiver of or acquiescence in the Event of Default. All remedies are
cumulative.

     Section 6.04 Waiver of Past Defaults.

          Subject to Sections 6.07 and 9.02, the Holders of a majority in aggregate principal amount of
the Securities then outstanding may, by notice to the Trustee, waive any past Default or Event of
Default and its consequences, other than (A) a Default or Event of Default in the payment of the
principal of, or premium, if any, or interest (including without limitation Contingent Interest, if
any) on any Security, or in the payment of the Redemption Price, the Option Purchase Price or the
Fundamental Change Repurchase Price (or accrued and unpaid

36

 

interest, if any, payable as herein provided, upon Redemption, Purchase at Holder’s Option or
Repurchase Upon Fundamental Change), (B) a Default or Event of Default arising from a failure by
the Company to convert any Securities in accordance with this Indenture or (C) any Default or Event
of Default in respect of any provision of this Indenture or the Securities which, under Section
9.02, cannot be modified or amended without the consent of the Holder of each outstanding Security
affected. When a Default or an Event of Default is waived, it is cured and ceases to exist for all
purposes under this Indenture. This Section 6.04 shall be in lieu of TIA § 316(a)(1)(B), and, as
permitted by the TIA, TIA § 316(a)(1)(B) is hereby expressly excluded from this Indenture.

     Section 6.05 Control by Majority.

          The Holders of a majority in aggregate principal amount of the Securities then outstanding may
direct the time, method and place of conducting any proceeding for any remedy available to the
Trustee or exercising any trust or power conferred on it. However, the Trustee may refuse to
follow any direction that conflicts with law or this Indenture, is unduly prejudicial to the rights
of other Holders or would involve the Trustee in personal liability unless the Trustee is offered
indemnity reasonably satisfactory to it; provided, that the Trustee may take any other action
deemed proper by the Trustee which is not inconsistent with such direction. This Section 6.05
shall be in lieu of TIA § 316(a)(1)(A), and, as permitted by the TIA, TIA § 316(a)(1)(A) is hereby
expressly excluded from this Indenture.

     Section 6.06 Limitation on Suits.

          Except as provided in Section 6.07, a Securityholder may not institute any proceeding under
this Indenture, or for the appointment of a receiver or a trustee, or for any other remedy under
this Indenture unless:

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

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

          (iii) such Holder or Holders offer and, if requested, provide to the Trustee indemnity
reasonably satisfactory to the Trustee against any loss, liability or expense to or of the Trustee
in connection with pursuing such remedy;

          (iv) the Trustee does not comply with the request within sixty (60) days after receipt of such
notice, request and offer of indemnity; and

          (v) during such sixty (60) day period, the Holders of a majority in aggregate principal amount
of the Securities then outstanding do not give the Trustee a direction inconsistent with the
request.

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

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     Section 6.07 Rights of Holders to Receive Payment.

          Notwithstanding any other provision of this Indenture, the right of any Holder to receive
payment of all amounts due with respect to the Securities, on or after the respective due dates as
provided herein, or to bring suit for the enforcement of any such payment on or after such
respective dates, shall not be impaired or affected without the consent of the Holder.

          Notwithstanding any other provision of this Indenture, the right of any Holder to convert the
Security in accordance with this Indenture, or to bring suit for the enforcement of such right,
shall not be impaired or affected without the consent of the Holder.

     Section 6.08 Collection Suit by Trustee.

          If an Event of Default specified in Section 6.01(i) or (ii) occurs and is continuing, the
Trustee may recover judgment in its own name and as trustee of an express trust against the Company
for the whole amount due with respect to the Securities, including any unpaid and accrued interest
and interest on overdue principal and, to the extent lawful, interest and such further amount as
shall be sufficient to cover the costs and expenses of collection, including the reasonable
compensate expenses, disbursements and advances of the Trustee; its agents and counsel.

     Section 6.09 Trustee May File Proofs of Claim.

          The Trustee may file such proofs of claim and other papers or documents as may be necessary or
advisable in order to have the claims of the Trustee, any predecessor Trustee and the
Securityholders allowed in any judicial proceedings relative to the Company or its creditors or
properties.

          The Trustee may collect and receive any moneys or other property payable or deliverable on any
such claims and to distribute the same, and any custodian, receiver, assignee, trustee, liquidator,
sequestrator or similar official in any judicial proceeding is hereby authorized by each Holder to
make such payments to the Trustee and, in the event that the Trustee shall consent to the making of
such payments directly to the Holders, to pay the Trustee any amount due it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any
other amounts due the Trustee under Section 7.07.

          Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to
or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or
composition affecting the Securities or the rights of any Holder thereof, or to authorize the
Trustee to vote in respect of the claim of any Holder in any such proceeding.

     Section 6.10 Priorities.

          If the Trustee collects any money pursuant to this Article VI, it shall pay out the money in
the following order:

			
	          First:     	 	to the Trustee for amounts due under Section 7.07;

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	          Second:	 	to Securityholders for all amounts due and unpaid on the Securities, without
preference or priority of any kind, according to the amounts due and payable on the Securities; and
	 
	          Third:	 	the balance, if any, to the Company.

          The Trustee, upon prior written notice to the Company, may fix a record date and payment date
for any payment by it to Securityholders pursuant to this Section 6.10. At least fifteen (15) days
before each such record date, the Trustee shall mail to each Holder and the Company a written
notice that states such record date and payment date and the amount of such payment.

     Section 6.11 Undertaking for Costs.

          In any suit for the enforcement of any right or remedy under this Indenture or in any suit
against the Trustee for any action taken or omitted by it as Trustee, a court in its discretion may
require the filing by any party litigant in the suit other than the Trustee of an undertaking to
pay the costs of the suit, and the court in its discretion may assess reasonable costs, including
reasonable attorneys’ fees, against any party litigant in the suit, having due regard to the merits
and good faith of the claims or defenses made by the party litigant. This Section 6.11 does not
apply to a suit by the Trustee, a suit by a Holder pursuant to Section 6.07 or a suit by Holders of
more than ten percent (10%) in aggregate principal amount of the outstanding Securities.

ARTICLE VII.

TRUSTEE 

     Section 7.01 Duties of Trustee.

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

          (b) The Trustee, except during the continuance of an Event of Default:

          (i) need perform only those duties that are specifically set forth in this Indenture and no
implied covenants or obligations shall be read into this Indenture against the Trustee; and

          (ii) in the absence of bad faith, willful misconduct or negligence on its part, may
conclusively rely, as to the truth of the statements and the correctness of the opinions expressed
therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements
of this Indenture; but in the case of any such certificates or opinions which by any provision
hereof are specifically required to be furnished to the Trustee, the Trustee shall examine the
certificates and opinions to determine whether or not they conform to the

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requirements of this Indenture (but need not confirm or investigate the accuracy of
mathematical calculations or other facts stated therein).

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

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

          (ii) the Trustee shall be not liable with respect to any action it takes or omits to take in
good faith in accordance with a direction received by it pursuant to Section 6.05.

          (d) Every provision of this Indenture that in any way relates to the Trustee is subject to the
provisions of this Section 7.01.

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

     Section 7.02 Rights of Trustee.

          (a) Subject to Section 7.01, the Trustee may conclusively rely on any document believed by it
to be genuine and to have been signed or presented by the proper person. The Trustee need not
investigate any fact or matter stated in the document; if, however, the Trustee shall determine to
make such further inquiry or investigation, it shall be entitled during normal business hours of
the Company to examine the relevant books, records and premises of the Company, personally or by
agent or attorney upon reasonable prior notice.

          (b) Before the Trustee acts or refrains from acting, it may require an Officer’s Certificate
and/or an Opinion of Counsel. The Trustee shall not be liable for any action it takes or omits to
take in good faith in reliance on such Officer’s Certificate or Opinion of Counsel. No such
Officer’s Certificate or Opinion of Counsel shall be at the expense of the Trustee.

          (c) Any request or direction of the Company mentioned herein shall be sufficiently evidenced
by a Company Request or Company Order, and any resolution of the Board of Directors shall be
sufficiently evidenced by a Board Resolution.

          (d) The Trustee may consult with counsel, and the advice of such counsel or any Opinion of
Counsel shall be full and complete authorization and protection in respect of any action taken,
suffered or omitted by it hereunder in good faith and in reliance thereon.

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

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          (f) The Trustee shall not be liable for any action it takes, suffers or omits to take in good
faith which it believes to be authorized or within its discretion, rights or powers conferred upon
it by this Indenture.

          (g) The Trustee (except with respect to Section 6.01) shall not have any duty to inquire as to
the performance of the Company with respect to the covenants contained in Article IV. In addition,
the Trustee shall not be deemed to have knowledge of a Default, Event of Default, Fundamental
Change, Make-Whole Fundamental Change or Public Acquirer Fundamental Change except any Default,
Event of Default, Fundamental Change, Make-Whole Fundamental Change or Public Acquirer Fundamental
Change of which a Responsible Officer of the Trustee shall have received written notification or
obtained actual knowledge. Except as otherwise provided herein, the Trustee may, in the absence of
such actual knowledge or receipt of such written notification, conclusively assume that there is no
Default, Event of Default, Fundamental Change, Make-Whole Fundamental Change or Public Acquirer
Fundamental Change. Delivery of reports, information and documents to the Trustee under Article IV
(other than Sections 4.04 and 4.07) is for informational purposes only and the receipt by the
Trustee of the foregoing shall not constitute constructive notice of any information contained
therein or determinable from information contained therein, including the Company’s compliance with
any of its covenants hereunder (as to which each of the Trustee is entitled to rely on Officer’s
Certificates).

          (h) The Trustee shall not be under any obligation to exercise any of the rights or powers
vested by this Indenture at the request or direction of any of the Holders pursuant to this
Indenture unless such Holders shall have offered to the Trustee, security or indemnity reasonably
satisfactory to the Trustee, as applicable, against the costs, expenses and liabilities which might
be incurred by it in compliance with such request or direction.

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

          (j) The Trustee may request that the Company deliver an Officer’s Certificate setting forth
the names of individuals and/or titles of officers authorized at such time to take specified
actions pursuant to this Indenture, which Officer’s Certificate may be signed by any person
authorized to sign an Officer’s Certificate, including any person specified as so authorized in any
such certificate previously delivered and not superseded.

          (k) The Trustee shall not be required to expend or risk its own funds or otherwise incur
financial liability for the performance of any of its duties hereunder or the exercise of any of
its rights or powers if there is reasonable ground for believing that the repayment of such funds
or reasonably adequate indemnity against such risk or liability is not assured to it.

          (l) The Trustee shall not have any duty (i) to see to any recording, filing or depositing of
this Indenture or any Indenture referred to herein or any financing statement or continuation
statement evidencing a security interest, or to see to the maintenance of any such

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recording or filing or depositing or to any rerecording, refiling or redepositing of any
thereof or (ii) to see to any insurance.

          (m) The rights of the Trustee to perform any discretionary act enumerated in this Indenture
shall not be construed as a duty, and the Trustee shall not be answerable other than for its
negligence or willful misconduct in the performance of such act.

          (n) The Trustee shall not be required to give any bond or surety in respect of the execution
of the powers granted hereunder.

     Section 7.03 Individual Rights of Trustee.

          The Trustee in its individual or any other capacity may become the owner or pledgee of
Securities and may otherwise deal with the Company or any of its Affiliates with the same rights
the Trustee would have if it were not Trustee. The Trustee, however, must comply with Sections
7.10 and 7.11.

     Section 7.04 Disclaimer of the Trustee.

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

     Section 7.05 Notice of Defaults.

          If a Default or Event of Default occurs and is continuing as to which the Trustee has received
notice pursuant to the provisions of this Indenture, or as to which a Responsible Officer of the
Trustee shall have actual knowledge, then the Trustee shall mail to each Holder a notice of the
Default or Event of Default within thirty (30) days after receipt of such notice or after acquiring
such knowledge, as applicable, unless such Default or Event of Default has been cured or waived;
provided, however, that, except in the case of a Default or Event of Default in payment of any
amounts due with respect to any Security, the Trustee may withhold such notice if, and so long as
it in good faith determines that, withholding such notice is in the best interests of Holders.

     Section 7.06 Reports by Trustee to Holders.

          Within sixty (60) days after each May 15, beginning with May 15, 2007, the Trustee shall mail
to each Securityholder if required by TIA § 313(a) a brief report dated as of such May 15 that
complies with TIA § 313(c). In such event, the Trustee also shall comply with TIA § 313(b) and TIA
§ 313(d).

          A copy of each report at the time of its mailing to Securityholders shall be mailed by first
class mail to the Company and filed by the Trustee with the SEC and each stock exchange, if any, on
which the Securities are listed. The Company shall promptly notify the Trustee of the listing or
delisting of the Securities on or from any stock exchange.

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     Section 7.07 Compensation and Indemnity.

          The Company shall pay to the Trustee from time to time such compensation for its services as
shall be agreed upon in writing. The Trustee’s compensation shall not be limited by any law on
compensation of a trustee of an express trust. The Company shall reimburse the Trustee upon
request for all reasonable out-of-pocket expenses incurred by them pursuant to, and in accordance
with, any provision hereof. Such expenses shall include the reasonable compensation and
out-of-pocket expenses of the agents and counsel of the Trustee.

          The Company shall indemnify the Trustee and any of its officers, directors, employees,
representatives and agents against any and all loss, liability, damage, claim or expense (including
the reasonable fees and expenses of counsel and taxes other than those based upon the income of the
Trustee) incurred by it in connection with the acceptance or administration of this trust and the
performance of its duties hereunder, including the reasonable costs and expenses of defending
itself against any claim (whether asserted by the Company, any Holder or any other Person) or
liability in connection with the exercise or performance of any of its powers and duties hereunder.
The Company need not pay any settlement made without its consent, which consent shall not be
unreasonably withheld or delayed. The Trustee shall notify the Company promptly of any claim for
which it may seek indemnification. The Company need not reimburse any expense or indemnify against
any loss or liability incurred by the Trustee through the negligence, bad faith or willful
misconduct of the Trustee.

          Notwithstanding anything herein to the contrary, to the extent permitted by the TIA, in no
event shall the Trustee be liable for special, indirect or consequential losses or damages of any
kind whatsoever (including, without limitation, lost profits), even if the Trustee has been advised
of the likelihood of such losses or damages and regardless of the form of action.

          To secure the Company’s payment obligations in this Section 7.07, the Trustee shall have a
lien prior to the Securities on all money or property held or collected by the Trustee pursuant to
this Indenture, except that held in trust to pay amounts due on particular Securities.

          The indemnity obligations of the Company with respect to the Trustee provided for in this
Section 7.07 shall survive any resignation or removal of the Trustee.

          When the Trustee incurs expenses or renders services after an Event of Default specified in
Section 6.01(viii) or (ix) occurs, the expenses and the compensation for the services are intended
to constitute expenses of administration under any Bankruptcy Law.

     Section 7.08 Replacement of Trustee.

          A resignation or removal of the Trustee and appointment of a successor Trustee shall become
effective only upon such successor’s acceptance of appointment as provided in this Section 7.08.

          The Trustee may resign by so notifying the Company in writing thirty (30) Business Days prior
to such resignation. The Holders of a majority in aggregate principal amount of the Securities
then outstanding may remove the Trustee by so notifying the Trustee

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and the Company in writing and may appoint a successor Trustee with the Company’s consent.
The Company may remove the Trustee if:

          (i) the Trustee fails to comply with Section 7.10;

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

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

          (iv) the Trustee becomes incapable of acting.

          If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee, for any
reason, the Company shall promptly appoint a successor Trustee.

          If a successor Trustee does not take office within thirty (30) days after the retiring Trustee
resigns or is removed, the retiring Trustee may, at the Company’s expense, and the Company or the
Holders of at least ten percent (10%) in aggregate principal amount of the outstanding Securities
may, petition any court of competent jurisdiction for the appointment of a successor Trustee.

          If the Trustee fails to comply with Section 7.10, the Company or any Holder may petition any
court of competent jurisdiction for the removal of the Trustee and the appointment of a successor
Trustee.

          Each successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company. Thereupon, the resignation or removal of the retiring Trustee shall
become effective, and the successor Trustee shall have all the rights, powers and duties of the
Trustee under this Indenture. The successor Trustee shall mail a notice of its succession to
Securityholders. The retiring Trustee shall promptly transfer all property held by it as Trustee
to the successor Trustee subject to the lien provided for in Section 7.07.

     Section 7.09 Successor Trustee by Merger, Etc.

          If the Trustee consolidates with, merges or converts into, or transfers all or substantially
all of its corporate trust business to, another corporation, the successor corporation without any
further act shall be the successor Trustee if such successor corporation is otherwise eligible
hereunder.

     Section 7.10 Eligibility; Disqualification.

          There shall at all times be a Trustee hereunder, which (A) is an entity organized and doing
business under the laws of the United States of America or of any state thereof, (B) is authorized
under such laws to exercise corporate trustee power, (C) is subject to supervision or examination
by federal or state authorities and (D) has a combined capital and surplus of at least $100 million
as set forth in its most recent published annual report of condition. The Trustee shall comply
with TIA § 310(b). Nothing in this Indenture shall prevent the Trustee from filing with the SEC
the application referred to in the penultimate paragraph of TIA § 310(b).

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     Section 7.11 Preferential Collection of Claims Against Company.

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

ARTICLE VIII.

DISCHARGE OF INDENTURE

     Section 8.01 Termination of the Obligations of the Company.

          This Indenture shall cease to be of further effect if (a) either (i) all outstanding
Securities (other than Securities replaced pursuant to Section 2.07 hereof) have been delivered to
the Trustee for cancellation or (ii) all outstanding Securities have become due and payable at
their scheduled maturity or upon Purchase at Holder’s Option, Redemption or Repurchase Upon
Fundamental Change, and in either case the Company irrevocably deposits, after to the applicable
due date, with the Paying Agent (if the Paying Agent is not the Company or any of its Affiliates)
cash in money of the United States that at the time of payment is legal tender for payment of
public and private debts, sufficient to pay all amounts due and owing on all outstanding Securities
(other than Securities replaced pursuant to Section 2.07 hereof) on the Maturity Date or an Option
Purchase Date, Redemption Date or Fundamental Change Repurchase Date, as the case may be; (b) the
Company pays to the Trustee all other sums payable hereunder by the Company; (c) no Default or
Event of Default with respect to the Securities shall exist on the date of such deposit; (d) such
deposit will not result in a breach or violation of, or constitute a Default or Event of Default
under, this Indenture; and (e) the Company has delivered to the Trustee an Officer’s Certificate
and an Opinion of Counsel, each stating that all conditions precedent provided for herein relating
to the satisfaction and discharge of this Indenture have been complied with; provided, however,
that Sections 2.02, 2.03, 2.04, 2.05, 2.06, 2.07, 2.08, 2.09, 2.10, 2.11, 2.12, 2.15, 2.16, 2.17,
3.05, 3.08, 3.09, 4.01, 4.02, 4.05, 4.06, 7.07 and 7.08 and Articles VIII and X shall survive any
discharge of this Indenture until such time as the Securities have been paid in full and there are
no Securities outstanding.

     Section 8.02 Application of Trust Money.

          The Trustee or Paying Agent, as applicable, shall hold in trust all money deposited with it
pursuant to Section 8.01 and shall apply such deposited money through the Paying Agent and in
accordance with this Indenture to the payment of amounts due on the Securities.

     Section 8.03 Repayment to Company.

          The Trustee and the Paying Agent shall promptly notify the Company of, and pay to the Company
upon the request of the Company, any excess money held by them at any time. The Trustee or the
Paying Agent, as the case may be, shall provide written notice to the Company of any money that has
been held by it and has, for a period of two (2) years, remained unclaimed for the payment of the
principal of, or any accrued and unpaid interest on, the Securities. The Trustee and the Paying
Agent shall pay to the Company upon the written request

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of the Company any money held by them for the payment of the principal of, premium, if any, or
any accrued and unpaid interest or Contingent Interest on, the notes that remains unclaimed for two
(2) years; provided, however, that the Trustee or such Paying Agent, before being required to make
any such repayment, may (in no event later than five (5) days after the Company requests repayment
pursuant to this Section 8.03), at the expense of the Company, cause to be published once in a
newspaper of general circulation in the City of New York or cause to be mailed to each Holder,
notice stating that such money remains unclaimed and that, after a date specified therein, which
shall not be less than thirty (30) days from the date of such publication or mailing, any unclaimed
balance of such money then remaining will be repaid to the Company. After payment to the Company,
Securityholders entitled to the money must look to the Company for payment as general creditors,
subject to applicable law, and all liability of the Trustee and the Paying Agent with respect to
such money and payment shall, subject to applicable law, cease.

     Section 8.04 Reinstatement.

          If the Trustee or Paying Agent is unable to apply any money in accordance with Sections 8.01
and 8.02 by reason of any legal proceeding or by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such application, the
obligations of the Company under this Indenture and the Securities shall be revived and reinstated
as though no deposit had occurred pursuant to Sections 8.01 and 8.02 until such time as the Trustee
or Paying Agent is permitted to apply all such money in accordance with Sections 8.01 and 8.02;
provided, however, that if the Company has made any payment of amounts due with respect to any
Securities because of the reinstatement of its obligations, then the Company shall be subrogated to
the rights of the Holders of such Securities to receive such payment from the money held by the
Trustee or Paying Agent.

ARTICLE IX.

AMENDMENTS

     Section 9.01 Without Consent of Holders.

          The Company, with the consent of the Trustee may amend or supplement this Indenture or the
Securities without notice to or the consent of any Securityholder:

          (i) to evidence the assumption of the Company’s Obligations under this Indenture or the
Securities by a successor upon the Company’s consolidation or merger or the sale, transfer, lease,
conveyance or other disposition of all or substantially all of the Company’s property or assets in
accordance with this Indenture;

          (ii) to comply with Section 10.11 and, in accordance with Section 10.14(e), to give effect to
an election, pursuant to such Section 10.14(e), by the Company to make an Acquirer Stock Conversion
Right Adjustment with respect to a Public Acquirer Fundamental Change;

          (iii) to make adjustments in accordance with this Indenture to the right to convert the
Securities upon certain reclassifications or changes in the Common Stock and certain

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consolidations, mergers and binding share exchanges upon the sale, transfer, lease, conveyance
or other disposition of all or substantially all the Company’s property or assets;

          (iv) to secure the obligations of the Company in respect of the Securities;

          (v) to add to the covenants of the Company described in this Indenture for the benefit of
Securityholders or to surrender any right or power conferred upon the Company;

          (vi) to make provisions with respect to adjustments to the Conversion Rate as required by this
Indenture or to increase the Conversion Rate in accordance with this Indenture;

          (vii) to comply with the rules or regulations of any securities exchange or automated
quotation system on which any of the Securities may be listed or traded; or

          (viii) to add to, change or eliminate any of the provisions of this Indenture as shall be
necessary or desirable in accordance with any amendments to the TIA, provided that such action does
not adversely affect the rights or interests of any Holder of Securities.

          In addition, the Company and the Trustee may enter into a supplemental indenture without the
consent of Holders of the Securities to cure any ambiguity, defect, omission or inconsistency in
this Indenture in a manner that does not, individually or in the aggregate with all other
modifications made or to be made to the Indenture, adversely affect the rights of any Holder in any
material respect.

     Section 9.02 With Consent of Holders.

          The Company, with the consent of the Trustee may amend or supplement this Indenture or the
Securities without notice to any Securityholder but with the written consent of the Holders of at
least a majority in aggregate principal amount of the outstanding Securities. Subject to Sections
6.04 and 6.07, the Holders of a majority in aggregate principal amount of the outstanding
Securities may, by notice to the Trustee, waive compliance by the Company with any provision of
this Indenture or the Securities without notice to any other Securityholder. Notwithstanding
anything herein to the contrary, without the consent of each Holder of each outstanding Security
affected, an amendment, supplement or waiver, including a waiver pursuant to Section 6.04, may not:

          (i) change the stated maturity of the principal of, or the payment date of any
installment of interest (including Contingent Interest, if any) on, any Security;

          (ii) reduce the principal amount of, or any premium or interest (including Contingent
Interest, if any) on, any Security;

          (iii) change the place, manner or currency of payment of principal of, or any premium
or interest (including Contingent Interest, if any) on, any Security;

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

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          (v) modify, in a manner adverse to Holders, the provisions with respect to the right of
Holders pursuant to Article III to require the Company to purchase Securities on an Option
Purchase Date or to repurchase Securities upon the occurrence of a Fundamental Change;

          (vi) adversely affect the right of Holders to convert Securities in accordance with
Article X;

          (vii) reduce the percentage of the aggregate principal amount of the outstanding
Securities whose Holders must consent to a modification to or amendment of any provision of
this Indenture or the Securities;

          (viii) reduce the percentage of the aggregate principal amount of the outstanding
Securities whose Holders must consent to a waiver of compliance with any provision of this
Indenture or the Securities or a waiver of any Default or Event of Default; or

          (ix) modify the provisions of this Indenture with respect to modification and waiver
(including waiver of a Default or an Event of Default), except to increase the percentage
required for modification or waiver or to provide for consent of each affected Holder.

          Promptly after an amendment, supplement or waiver under Section 9.01 or this Section 9.02
becomes effective, the Company shall mail, or cause to be mailed, to Securityholders a notice
briefly describing such amendment, supplement or waiver. Any failure of the Company to mail such
notice shall not in any way impair or affect the validity of such amendment, supplement or waiver.

          It shall not be necessary for the consent of the Holders under this Section 9.02 to approve
the particular form of any proposed amendment, supplement or waiver, but it shall be sufficient if
such consent approves the substance thereof.

     Section 9.03 Compliance with Trust Indenture Act.

          Every amendment, waiver or supplement to this Indenture or the Securities shall comply with
the TIA as then in effect.

     Section 9.04 Revocation and Effect of Consents.

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

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          After an amendment, supplement or waiver becomes effective with respect to the Securities, it
shall bind every Holder unless such amendment, supplement or waiver makes a change that requires,
pursuant to Section 9.02, the consent of each Holder affected. In that case, the amendment,
supplement or waiver shall bind each Holder of a Security who has consented to it and, provided
that notice of such amendment, supplement or waiver is reflected on a Security that evidences the
same debt as the consenting Holder’s Security, every subsequent Holder of a Security or portion of
a Security that evidences the same debt as the consenting Holder’s Security.

          Nothing in this Section 9.04 shall impair the Company’s rights pursuant Section 9.01 to amend
this Indenture or the Securities without the consent of any Securityholder in the manner set forth
in, and permitted by, such Section 9.01.

     Section 9.05 Notation on or Exchange of Securities.

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

     Section 9.06 Trustee Protected.

          The Trustee shall sign any amendment, supplemental indenture or waiver authorized pursuant to
this Article IX; provided, however, that the Trustee need not sign any amendment, supplement or
waiver authorized pursuant to this Article IX that adversely affects the rights, duties,
liabilities or immunities of the Trustee. The Trustee shall be entitled to receive and
conclusively rely upon an Opinion of Counsel as to legal matters and an Officer’s Certificate as to
factual matters that any supplemental indenture, amendment or waiver is permitted or authorized
pursuant to this Indenture.

     Section 9.07 Effect of Supplemental Indentures.

          Upon the due execution and delivery of any supplemental indenture in accordance with this
Article IX, this Indenture shall be modified in accordance therewith, and such supplemental
indenture shall form a part of this Indenture for all purposes, and, except as set forth in
Sections 9.02 and 9.04, every Holder of Securities shall be bound thereby.

ARTICLE X.

CONVERSION

     Section 10.01 Conversion Privilege; Restrictive Legends.

          (a) Subject to the provisions of Article III, the Securities shall be convertible into cash
or, at the Company’s option, cash and shares of Common Stock in accordance with this Article X and
as set forth below if any of the following conditions are satisfied:

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          (i) Conversion Based on Closing Sale Price of Common Stock. The Securities may be surrendered
for conversion into cash or, at the Company’s option, cash and shares of Common Stock on any
Business Day of a calendar quarter after the calendar quarter ending December 31, 2006, if the
Closing Sale Price for each of twenty (20) or more Trading Days in a period of thirty (30)
consecutive Trading Days ending on the last Trading Day of the immediately preceding calendar
quarter exceeds one hundred and twenty percent (120%) of the Conversion Price in effect on the last
Trading Day of the immediately preceding calendar quarter. Solely for purposes of determining
whether the Securities shall have become convertible pursuant to this Section 10.01(a)(i), the
Board of Directors shall, in its good faith determination, which shall be described in a Board
Resolution, make appropriate adjustments to the Closing Sale Prices and/or such Conversion Price
used to determine whether the Securities shall have become convertible pursuant to this Section
10.01(a)(i) to account for any adjustments to the Conversion Rate which shall have become
effective, or any event requiring an adjustment to the Conversion Rate where the Ex Date of such
event occurs, during the period of thirty (30) consecutive Trading Days ending on the last Trading
Day of the immediately preceding calendar quarter.

          (ii) Conversion Upon Satisfaction of Trading Price Condition. The Securities may be
surrendered for conversion into cash or, at the Company’s option, cash and shares of Common Stock
during the five (5) consecutive Business Days immediately after any five (5) consecutive Trading
Day period (such five (5) consecutive Trading Day period, the “Note Measurement Period”) in which
the average Trading Price per $1,000 principal amount of the Securities was equal to or less than
ninety eight percent (98%) of the average Conversion Value (as defined below) during the Note
Measurement Period (such condition, the “Trading Price Condition”). The Bid Solicitation Agent
shall not have any obligation to determine the Trading Price unless the Company has requested such
determination in writing, and the Company shall have no obligation to make such request unless a
Holder provides the Company with reasonable evidence that the Trading Price per $1,000 principal
amount of the Securities would be equal to or less than ninety eight percent (98%) of the
Conversion Value. Upon receipt of such evidence, the Company shall instruct the Bid Solicitation
Agent in writing to determine the Trading Price per $1,000 principal amount of the Securities for
each of the five (5) successive Trading Days immediately after the Company receives such evidence
and on each Trading Day thereafter until the first Trading Day on which the Trading Price Condition
is no longer satisfied. For purposes of this paragraph, the “Conversion Value” per $1,000
principal amount of Securities, on a given Trading Day, means the product of the Closing Sale Price
on such Trading Day and the Conversion Rate in effect on such Trading Day.

          (iii) Conversion Based on Redemption. A Security, or portion of a Security, which has been
called for Redemption pursuant to Section 3.01 and paragraph 6 of the Securities may be surrendered
for conversion into cash or, at the Company’s option, cash and shares of Common Stock; provided,
however, that such Security or portion thereof may be surrendered for conversion pursuant to this
paragraph only until the close of business on the Business Day immediately preceding the Redemption
Date.

          (iv) Conversion Upon Certain Distributions. If the Company takes any action, or becomes aware
of any event, that would require an adjustment to the Conversion Rate pursuant to Sections
10.05(b), 10.05(c), 10.05(d) or 10.05(e), the Securities may be surrendered

50

 

for conversion into cash or, at the Company’s option, cash and shares of Common Stock
beginning on the date the Company mails the notice to the Holders as provided in Section 10.10 (or,
if earlier, the date the Company is required under this Indenture to mail such notice) and at any
time thereafter until the close of business on the Business Day immediately preceding the Ex Date
(as defined in Section 10.05(g)) of the applicable transaction or until the Company announces that
such transaction will not take place.

          (v) Conversion Upon Occurrence of Certain Corporate Transactions. If either:

     (A) a Fundamental Change or a Make-Whole Fundamental Change occurs; or

     (B) the Company is a party to a consolidation, merger or binding share
exchange, sale of all or substantially all of the Company’s properties and assets or
other similar transaction, in each case, pursuant to which the Common Stock would be
converted into or exchanged for, or would constitute solely the right to receive,
cash, securities or other property,

then, in each case, the Securities may be surrendered for conversion into cash or, at the Company’s
option, cash and shares of Common Stock at any time during the period that begins on, and includes,
the date that is thirty (30) calendar days prior to the date originally announced by the Company as
the anticipated effective date of such transaction (which anticipated effective date the Company
shall disclose, in good faith, in the written notice, public announcement and publication referred
to in Section 10.01(c)) and ends on, and includes, the date that is thirty (30) calendar days after
the actual effective date of such transaction; provided, however, that if such transaction is a
Make-Whole Fundamental Change, then the Securities may also be surrendered for conversion into cash
or, at the Company’s option, cash and shares of Common Stock at any time during the Make-Whole
Conversion Period applicable to such Make-Whole Fundamental Change; and provided, further, that if
such transaction is a Fundamental Change, then the Securities may also be surrendered for
conversion into cash and, if applicable, shares of Common Stock at any time until, and including,
the Fundamental Change Repurchase Date applicable to such Fundamental Change.

          (vi) Conversion on or after October 1, 2024 and at any time from September 1, 2011 to October
1, 2011. The Securities may be surrendered for conversion into cash or, at the Company’s option,
cash and shares of Common Stock at any time on or after October 1, 2024 and prior to the Maturity
Date or the earlier Redemption by the Company or Purchase at Holder’s Option, and at any time from,
and including, September 1, 2011 to, and including, October 1, 2011.

          (b) The initial Conversion Rate shall be ___shares of Common Stock per $1,000 principal
amount of Securities. The Conversion Rate shall be subject to adjustment in accordance with
Sections 10.05 through 10.14.

          (c) Whenever any event described in Section 10.01 shall occur which shall cause the Securities
to become convertible as provided in this Article X, the Company shall

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promptly deliver, in accordance with Section 14.02, written notice of the convertibility of
the Securities to the Trustee, the Conversion Agent and each Holder and shall, as soon practicable,
but in no event later than the open of business on the second Business Day following the date the
Securities shall become convertible as provided in this Article X as a result of such event,
publicly announce, through a reputable national newswire service, and publish on the Company’s
website, that the Securities have become convertible. Such written notice, public announcement and
publication shall include:

          (i) a description of such event;

          (ii) a description of the periods during which the Securities shall be convertible as provided
in this Article X as a result of such event;

          (iii) the anticipated effective date of such event, if applicable; and

          (iv) the procedures Holders must follow to convert their notes in accordance with this Article
X, including the name and address of the Conversion Agent.

          A Holder may convert a portion of the principal amount of a Security if such portion is $1,000
principal amount or an integral multiple of $1,000 principal amount. Provisions of this Indenture
that apply to conversion of all of a Security also apply to conversion of a portion of such
Security.

     Section 10.02 Conversion Procedure And Payment Upon Conversion.

          (a) To convert a Security, a Holder must satisfy the requirements of paragraph 10 of the
Securities or to convert interests in a Global Security, the Holder must comply with the applicable
procedures of the Depository. Upon conversion of a Holder’s Security, the Company shall deliver,
through the Conversion Agent, to such converting Holder a settlement amount, per $1,000 principal
amount of Securities being converted, equal to the sum of the Daily Settlement Amounts for each of
the 20 Trading Days during the Cash Settlement Averaging Period (the “Settlement Amount”).

          The “Daily Settlement Amount” for each of the 20 Trading Days during the Cash Settlement
Averaging Period shall consist of (i) the Daily Principal Return and (ii) the Daily Share Amount;
provided, however, that the Company shall not issue fractional shares of Common Stock and shall
instead deliver cash (in addition to any other consideration payable upon such conversion) in an
amount equal to the value of such fraction computed on the basis of the Closing Sale Price per
share of Common Stock on the Conversion Date of such conversion.

          The Company shall deliver such Settlement Amount as soon as practicable following the date
(the “Conversion Date”) on which such Holder satisfies all the requirements for such conversion
specified in paragraph 10 of the Securities, but in no event more than three (3) Business Days
after the last Trading Day in the Cash Settlement Averaging Period applicable to such conversion;
provided, however, that any Make-Whole Consideration payable pursuant to Section 10.14 shall be
delivered by the Company within the time period specified in Section 10.14.

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          (b) “Cash Settlement Averaging Period” shall mean, with respect to a Security that is tendered
for conversion in accordance with this Article X, the twenty (20) consecutive Trading-Day period
that begins on, and includes, the second (2nd) Trading Day after the day such Security is tendered
for such conversion.

          “Daily Principal Return” shall mean, with respect to a Trading Day, the lesser of fifty
dollars ($50) and the Daily Conversion Value for such Trading Day.

          “Daily Conversion Value” shall mean, with respect to a Trading Day, one-twentieth (1/20th) of
the product of (i) the Conversion Rate in effect on such Trading Day and (ii) the Closing Sale
Price per share of Common Stock on such Trading Day.

          “Daily Share Amount” shall mean, with respect to a Trading Day, an amount equal to the
following: (i) if the Daily Conversion Value for such Trading Day is equal to or lesser than fifty
dollars ($50), then the Daily Share Amount with respect to such Trading Day shall mean an amount
equal to zero (0); and (ii) if the Daily Conversion Value for such Trading Day exceeds fifty
dollars ($50), then the Daily Share Amount with respect to such Trading Day shall mean a fraction
(a) whose numerator is the excess of such Daily Conversion Value over fifty dollars ($50) and (b)
whose denominator is the Closing Sale Price per share of Common Stock on such Trading Day.

          (c) On and after the Conversion Date of a Security, the person in whose name any certificate
representing Net Shares, if any, is to be registered shall be treated as a stockholder of record of
the Company, and all rights of the Holder of such Security shall terminate, other than the right to
receive the consideration deliverable upon conversion of such Security as provided herein. A
Holder of Securities is not entitled, as such, to any rights of a holder of Common Stock until such
Holder has converted its Securities into shares of Common Stock (to the extent such Securities are
convertible into Shares of Common Stock) or is deemed to be a stockholder of record of the Company,
as provided in this Section 10.02(c).

          (d) Except as provided in the Securities or in this Article X, no payment or adjustment will
be made for accrued interest or Contingent Interest on a converted Security or for dividends on any
Common Stock issued on or prior to conversion. Upon the conversion of any Security, the accrued
but unpaid interest attributable to the period from the Issue Date to the Conversion Date with
respect to the converted Securities, shall not be cancelled, extinguished or forfeited, but rather
shall be deemed to be paid in full to the Holder thereof through delivery of cash and shares of
Common Stock, if any, in exchange for the Securities being converted pursuant to the provisions
hereof. If any Holder surrenders a Security for conversion after the close of business on the
record date for the payment of an installment of interest and on or before the related interest
payment date, then, notwithstanding such conversion, the accrued and unpaid interest payable with
respect to such Security on such interest payment date shall be paid, on such interest payment
date, to the Holder of record of such Security at the close of business on such record date;
provided, that such Security, when surrendered for conversion to the Conversion Agent on behalf of
the Company, must be accompanied by payment in cash of an amount equal to the interest payable on
such interest payment date on the portion of the Security so converted; provided further, however,
that such payment to the Conversion Agent described in the immediately preceding proviso in respect
of a Security surrendered for conversion shall

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not be required if such Security is called for Redemption pursuant to Sections 3.01 and 3.04
and paragraphs 6 and 7 of the Securities, or if the Holder converts Securities pursuant to a
Fundamental Change and the Company has specified a Redemption Date or a Fundamental Change
Repurchase Date, as applicable, in either case that is after a record date for the payment of an
installment of interest and on or before the related interest payment date; provided further, that,
if the Company shall have, prior to the Conversion Date with respect to a Security, defaulted in a
payment of interest on such Security, then in no event shall the Holder of such Security who
surrenders such Security for conversion be required to pay such defaulted interest or the interest
that shall have accrued on such defaulted interest pursuant to Section 2.12 or otherwise (it being
understood that nothing in this Section 10.02(d) shall affect the Company’s obligations under
Section 2.12).

          (e) If a Holder converts more than one Security at the same time, the number of full shares of
Common Stock issuable upon such conversion, if any, shall be based on the total principal amount of
all Securities converted.

          (f) Upon surrender of a Security that is converted in part, the Trustee shall authenticate for
the Holder a new Security equal in principal amount to the unconverted portion of the Security
surrendered.

          (g) If the last day on which a Security may be converted is a Legal Holiday in a place where a
Conversion Agent is located, the Security may be surrendered to that Conversion Agent on the next
succeeding day that is not a Legal Holiday.

          (h) The Company may elect to pay cash to the Holders surrendered for conversion in lieu of all
or a portion of the Common Stock otherwise issuable pursuant to this Article X. In such event, on
any day prior to the first Trading Day of the applicable Cash Settlement Averaging Period, the
Company shall specify a percentage of the Daily Share Amount that shall be settled in cash (the
“Cash Percentage”) and the amount of cash that the Company shall pay in respect of each Trading Day
in the applicable Cash Settlement Averaging Period will equal the product of: (1) the Cash
Percentage, (2) the Daily Share Amount for such Trading Day and (3) the Closing Sale Price of the
Common Stock for such Trading Day (provided that after the consummation of a Fundamental Change in
which the consideration is comprised entirely of cash, the amount used in this clause (3) shall be
the cash price per share received by holders of the Common Stock in such Fundamental Change). The
number of shares of Common Stock that the Company shall deliver in respect of each Trading Day in
the applicable Cash Settlement Averaging Period will be a percentage of the Daily Share Amount
equal to 100% minus the Cash Percentage. Upon making a determination that a percentage of the Daily
Share Amount will be settled in cash, the Company shall promptly notify Holders of such Cash
Percentage by notifying the Trustee (the “Cash Percentage Notice”). If the Company does not
specify a Cash Percentage by the close of business on the Trading Day prior to the scheduled first
Trading Day of the applicable Cash Settlement Averaging Period, the Company shall settle 100% of
the Daily Share Amount for each Trading Day in the applicable Cash Settlement Averaging Period with
shares of Common Stock; provided, however, that the Company shall pay cash in lieu of fractional
shares otherwise issuable upon conversion of Securities. The Company at its option, may revoke any
Cash Percentage Notice by notifying the Trustee; provided, that the Company shall revoke such
notice by the close of business on the

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Trading Day prior to the scheduled first Trading Day of the applicable Cash Settlement
Averaging Period.

     Section 10.03 Taxes on Conversion.

          If a Holder converts its Security, the Company shall pay any documentary, stamp or similar
issue or transfer tax or duty due on the issue, if any, of shares of Common Stock upon the
conversion. However, such Holder shall pay any such tax or duty which is due because such shares
are issued in a name other than such Holder’s name. The Conversion Agent may refuse to deliver a
certificate representing the shares of Common Stock to be issued in a name other than such Holder’s
name until the Conversion Agent receives a sum sufficient to pay any tax or duty which will be due
because such shares are to be issued in a name other than such Holder’s name. Nothing herein shall
preclude any tax withholding required by law or regulation.

     Section 10.04 Company to Provide Stock.

          The Company shall at all times reserve out of its authorized but unissued Common Stock or
Common Stock held in its treasury enough shares of Common Stock to permit the conversion, in
accordance herewith, of all of the Securities. The shares of Common Stock, if any, due upon
conversion of a Global Security shall be delivered by the Company in accordance with the
Depositary’s customary practices.

          All shares of Common Stock which may be issued upon conversion of the Securities shall be
validly issued, fully paid and non-assessable and shall be free of preemptive or similar rights and
free of any lien or adverse claim.

          The Company shall comply with all securities laws regulating the offer and delivery of shares
of Common Stock upon conversion of Securities and shall list such shares on each national
securities exchange or automated quotation system on which the Common Stock is listed.

     Section 10.05 Adjustment of Conversion Rate.

          The Conversion Rate shall be subject to adjustment from time to time as follows:

      (a) If the Company shall (1) pay a dividend in shares of Common Stock to all holders of
Common Stock, (2) make a distribution in shares of Common Stock to all holders of Common
Stock, (3) subdivide the outstanding shares of Common Stock into a greater number of shares
of Common Stock or (4) combine the outstanding shares of Common Stock into a smaller number
of shares of Common Stock, the Conversion Rate shall be adjusted by multiplying the
Conversion Rate in effect immediately prior to close of business on the record date or
effective date, as applicable, of such dividend, distribution, subdivision or combination by
the number of shares of Common Stock which a person who owns only one share of Common Stock
immediately before the record date or effective date, as applicable, of such dividend,
distribution, subdivision or combination and who is entitled to participate in such
dividend, distribution, subdivision or combination would own immediately after giving effect
to such dividend, distribution, subdivision or combination (without giving effect to any

55

 

arrangement pursuant to such dividend, distribution, subdivision or combination not to
issue fractional shares of Common Stock). Any adjustment made pursuant to this Section
10.05(a) shall become effective immediately after the record date in the case of a dividend
or distribution and shall become effective immediately after the effective date in the case
of a subdivision or combination.

      (b) If the Company shall issue rights or warrants to all or substantially all holders
of Common Stock, entitling them, for a period expiring not more than sixty (60) calendar
days immediately following the record date for the determination of holders of Common Stock
entitled to receive such rights or warrants, to subscribe for or purchase shares of Common
Stock (or securities convertible into or exchangeable or exercisable for Common Stock), at a
price per share (or having a conversion, exchange or exercise price per share) that is less
than the Current Market Price (as determined pursuant to Section 10.05(g)) per share of
Common Stock on the record date for the determination of holders of Common Stock entitled to
receive such rights or warrants, the Conversion Rate shall be increased by multiplying the
Conversion Rate in effect immediately prior to such record date by a fraction of which (A)
the numerator shall be the sum of (I) the number of shares of Common Stock outstanding at
the close of business on such record date and (II) the aggregate number of shares (the
“Underlying Shares”) of Common Stock underlying all such issued rights or warrants (whether
by exercise, conversion, exchange or otherwise), and (B) the denominator shall be the sum of
(I) number of shares of Common Stock outstanding at the close of business on such record
date and (II) the number of shares of Common Stock which the aggregate exercise, conversion,
exchange or other price at which the Underlying Shares may be subscribed for or purchased
pursuant to such rights or warrants would purchase at such current market price per share of
Common Stock; provided, however, no adjustment shall be made pursuant to this Section
10.05(b) solely by reason of a distribution of rights pursuant to a shareholders’ rights
plan, provided the Company has complied with the provisions of Section 10.13 with respect to
such shareholders’ rights plan and distribution. Such increase shall become effective
immediately prior to the opening of business on the day following such record date. In no
event shall the Conversion Rate be decreased pursuant to this Section 10.05(b).

      (c) If the Company shall dividend or distribute to all or substantially all holders of
Common Stock shares of Capital Stock of the Company or any existing or future Subsidiary
(other than Common Stock), evidences of Indebtedness or other assets (other than dividends
or distributions requiring an adjustment to the Conversion Rate in accordance with Sections
10.05(d) or 10.05(e)), or shall dividend or distribute to all or substantially all holders
of Common Stock rights or warrants to subscribe for or purchase securities (other than
dividends or distributions of rights or warrants requiring an adjustment to the Conversion
Rate in accordance with Section 10.05(b)), then in each such case the Conversion Rate shall
be increased by multiplying the Conversion Rate in effect immediately prior to the close of
business on the record date for the determination of stockholders entitled to such dividend
or distribution by a fraction of which (A) the numerator shall be the Current Market Price
per share of Common Stock (as determined pursuant to Section 10.05(g)) on such record date
and (B) the denominator shall be an amount equal to (I) such Current Market Price per share
of Common Stock less (II) the

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fair market value (as determined in good faith by the Board of Directors, whose
determination shall be conclusive and described in a Board Resolution), on such record date,
of the portion of the shares of Capital Stock, evidences of Indebtedness, assets, rights and
warrants to be dividended or distributed applicable to one share of Common Stock, such
increase to become effective immediately prior to the opening of business on the day
following such record date; provided, however, that if such denominator is equal to or less
than zero, then, in lieu of the foregoing adjustment to the Conversion Rate, adequate
provision shall be made so that each Holder shall upon conversion of its Securities, in
addition to any consideration otherwise payable as herein provided upon such conversion,
receive an amount, per $1,000 principal amount of such Securities, of shares of Capital
Stock, evidences of Indebtedness, assets, rights and/or warrants that a person that owns, on
such record date, a number of shares of Common Stock equal to the Conversion Rate in effect
at the close of business on such record date would have received as a result of such
dividend or distribution. Notwithstanding the foregoing, in the event that the Company
shall distribute rights or warrants (other than distributions of rights or warrants
requiring an adjustment to the Conversion Rate in accordance with Section 10.05(b))
(collectively, “Rights”) pro rata to holders of Common Stock, the Company may, in lieu of
making any adjustment pursuant to this Section 10.05(c), make proper provision so that each
Holder of a Security who converts such Security (or any portion thereof) on or after the
record date for such distribution and prior to the expiration or redemption of the Rights
shall be entitled to receive upon such conversion, in addition to any consideration
otherwise payable as herein provided upon such conversion, a number of Rights, per $1,000
principal amount of such Security, to be determined as follows: (i) if such conversion
occurs on or prior to the date for the distribution to the holders of Rights of separate
certificates evidencing such Rights (the “Distribution Date”), the same number of Rights to
which a holder of a number of shares of Common Stock equal to the Conversion Rate in effect
at the close of business on such record date (or, in the event such distribution is pursuant
to a shareholders’ rights plan, equal to the number of Net Shares that would be issuable in
accordance herewith if such Security were surrendered for conversion immediately before the
close of business on such record date) would be entitled at the time of such conversion in
accordance with the terms and provisions of and applicable to the Rights; and (ii) if such
conversion occurs after the Distribution Date, the same number of Rights to which a holder
of a number of shares of Common Stock equal to the Conversion Rate in effect immediately
prior to the Distribution Date (or, in the event such distribution is pursuant to a
shareholders’ rights plan, equal to the number of Net Shares that would be issuable in
accordance herewith if such Security were surrendered for conversion immediately before the
close of business on the Business Day immediately preceding the Distribution Date) would
have been entitled on the Distribution Date in accordance with the terms and provisions of
and applicable to the Rights. Any distribution of rights or warrants pursuant to a
shareholders’ rights plan complying with the requirements set forth in the preceding
sentence of this paragraph and with Section 10.13 shall not constitute a distribution of
rights or warrants pursuant to this Section 10.05(c). In no event shall the Conversion Rate
be decreased pursuant to this Section 10.05(c).

      (d) If the Company shall, by dividend or otherwise, at any time make a distribution of
cash (excluding any cash that is distributed as part of a distribution

57

 

requiring a Conversion Rate adjustment pursuant to Section 10.05(e)) to all or
substantially all holders of Common Stock, the Conversion Rate shall be increased by
multiplying the Conversion Rate in effect immediately prior to the close of business on the
record date for the determination of holders of Common Stock entitled to such distribution
by a fraction (A) whose numerator shall be the Current Market Price per share of Common
Stock (as determined pursuant to Section 10.05(g)) on such record date and (B) whose
denominator shall be an amount equal to (I) such Current Market Price per share of Common
Stock less (II) the amount of the distribution per share of Common Stock; provided, however,
that the Conversion Rate shall not be adjusted pursuant to this Section 10.05(d) to the
extent, and only to the extent, such adjustment would cause the Conversion Price to be less
than sixty-six and two-thirds cents ($0.66-2/3) (which minimum amount shall be subject to appropriate adjustments, in
the good faith determination of the Board of Directors (whose determination shall be
described in a Board Resolution), to account for stock splits and combinations, stock
dividends, reclassifications and similar events); provided further that, if the denominator
of such fraction shall be equal to or less than zero, the Conversion Rate shall be instead
adjusted so that the Conversion Price is equal to sixty-six and
two-thirds cents ($0.66-2/3) (as adjusted in
accordance with the immediately preceding proviso). An adjustment to the Conversion Rate
pursuant to this Section 10.05(d) shall become effective immediately prior to the opening of
business on the day immediately following such record date. In no event shall the
Conversion Rate be decreased pursuant to this Section 10.05(d).

      (e) If the Company or any Subsidiary shall distribute cash or other consideration in
respect of a tender offer or exchange offer made by the Company or any Subsidiary for all or
any portion of the Common Stock where the sum of the aggregate amount of such cash
distributed and the aggregate fair market value (as determined in good faith by the Board of
Directors, whose determination shall be conclusive and set forth in a Board Resolution), as
of the Expiration Date (as defined below), of such other consideration distributed (such
sum, the “Aggregate Amount”) expressed as an amount per share of Common Stock validly
tendered or exchanged, and not withdrawn, pursuant to such tender offer or exchange offer as
of the Expiration Time (as defined below) (such tendered or exchanged shares of Common
Stock, the “Purchased Shares”) exceeds the current market price per share of Common Stock
(as determined pursuant to Section 10.05(g)) on the last date (such last date, the
“Expiration Date”) on which tenders or exchanges could have been made pursuant to such
tender offer or exchange offer (as the same may be amended through the Expiration Date),
then the Conversion Rate shall be increased by multiplying the Conversion Rate in effect
immediately prior to the close of business on the Expiration Date by a fraction (A) whose
numerator is equal to the sum of (I) the Aggregate Amount and (II) the product of (a) the
Current Market Price per share of Common Stock (as determined pursuant to Section 10.05(g))
on the Expiration Date and (b) an amount equal to (i) the number of shares of Common Stock
outstanding as of the last time (the “Expiration Time”) at which tenders or exchanges could
have been made pursuant to such tender offer or exchange offer (including all Purchased
Shares) less (ii) the Purchased Shares and (B) whose denominator is equal to the product of
(I) the number of shares of Common Stock outstanding as of the Expiration Time (including
all Purchased Shares) and (II) the Current Market Price per share of Common Stock on the
Expiration Date.

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      An increase, if any, to the Conversion Rate pursuant to this Section 10.05(e) shall
become effective immediately prior to the opening of business on the Business Day following
the Expiration Date. In the event that the Company or a Subsidiary is
obligated to purchase shares of Common Stock pursuant to any such tender offer or exchange offer, but the Company
or such Subsidiary is permanently prevented by applicable law from effecting any such
purchases, or all such purchases are rescinded, then the Conversion Rate shall again be
adjusted to be the Conversion Rate which would then be in effect if such tender offer or
exchange offer had not been made. If the application of this Section 10.05(e) to any tender
offer or exchange offer would result in a decrease in the Conversion Rate, no adjustment
shall be made for such tender offer or exchange offer under this Section 10.05(e).

      (f) In addition to the foregoing adjustments in subsections (a), (b), (c), (d) and (e)
above, the Company, from time to time and to the extent permitted by law and the continued
listing requirements of the Nasdaq Global Select Market, may increase the Conversion Rate by
any amount for a period of at least twenty (20) calendar days or such longer period as may
be permitted by law, if the Board of Directors has made a determination, which determination
shall be conclusive, that such increase would be in the best interests of the Company. Such
Conversion Rate increase shall be irrevocable during such period. The Company shall give
notice to the Trustee and the Conversion Agent and shall mail notice of such increase to
each Holder of Securities at such Holder’s address as the same appears on the registry books
of the Registrar, at least fifteen (15) days prior to the date on which such increase
commences.

      (g) For the purpose of any computation under subsections (a), (b), (c) (d) or (e) above
of this Section 10.05, the current market price per share of Common Stock (the “Current
Market Price”) on the date fixed for determination of the stockholders entitled to receive
the issuance or distribution requiring such computation (the “Determination Date”) shall be
deemed to be the average of the Closing Sale Prices for the ten (10) consecutive Trading
Days ending on, and including, the earlier of the Determination Date and the Ex Date with
respect to such issuance or distribution, and, for the purpose of any computation under
Section 10.05(e), the Current Market Price per share of Common Stock on the Expiration Date
for the tender offer or exchange offer requiring such computation shall be deemed to be the
average of the Closing Sale Price for the ten (10) consecutive Trading Days immediately
preceding, and including, the Expiration Date; provided, however, that such Current Market
Price per share of Common Stock shall be appropriately adjusted by the Board of Directors,
in its good faith determination (which determination shall be described in a Board
Resolution), to account for any adjustment, pursuant hereto, to the Conversion Rate that
shall become effective, or any event requiring, pursuant hereto, an adjustment to the
Conversion Rate where the Ex Date of such event occurs, at any time during the period that
begins on, and includes, the first day of such ten (10) consecutive Trading Days and ends
on, and includes, the date when the adjustment to the Conversion Rate on account of the
event requiring the computation of such Current Market Price becomes effective.

          The term “Ex Date,” (i) when used with respect to any issuance or distribution, means the
first date on which the Common Stock trades the regular way on the relevant

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exchange or in the relevant market from which the Closing Sale Price was obtained without the
right to receive such issuance or distribution, (ii) when used with respect to any subdivision or
combination of shares of Common Stock, means the first date on which the Common Stock trades the
regular way on such exchange or in such market after the time at which such subdivision or
combination becomes effective, and (iii) when used with respect to any tender offer or exchange
offer means the first date on which the Common Stock trades the regular way on such exchange or in
such market after the expiration time of such tender offer or exchange offer (as it may be amended
or extended).

     Section 10.06 No Adjustment.

          Notwithstanding anything to the contrary in Section 10.05, no adjustment in the Conversion
Rate pursuant to Section 10.05 shall be required until cumulative adjustments amount to one percent
(1%) or more of the Conversion Rate as last adjusted (or, if never adjusted, the initial Conversion
Rate); provided, however, that any adjustments to the Conversion Rate which by reason of this
Section 10.06 are not required to be made shall be carried forward and taken into account in any
subsequent adjustment to the Conversion Rate; provided further, that if the Company shall mail a
notice of Redemption pursuant to Section 3.04, or if a Fundamental Change or Make-Whole Fundamental
Change occurs, or if the Securities shall become convertible pursuant to Section 10.01(a)(iv) or
Section 10.01(a)(v), then, in each case, any adjustments to the Conversion Rate that have been, and
at such time remain, deferred pursuant to this Section 10.06 shall be given effect, and such
adjustments, if any, shall no longer be carried forward and taken into account in any subsequent
adjustment to the Conversion Rate; provided, further, that the Company shall make such carried
forward adjustments regardless of whether the aggregate adjustment is less than 1% within one year
of the first such adjustment carried forward, and upon maturity. All calculations under this
Article X shall be made to the nearest cent or to the nearest one-millionth of a share, as the case
may be.

          If any rights, options or warrants issued by the Company and requiring an adjustment to the
Conversion Rate in accordance with Section 10.05 are only exercisable upon the occurrence of
certain triggering events, then the Conversion Rate will not be adjusted as provided in Section
10.05 until the earliest of such triggering event occurs. Upon the expiration or termination of
any such rights, options or warrants without the exercise of such rights, options or warrants, the
Conversion Rate then in effect shall be adjusted immediately to the Conversion Rate which would
have been in effect at the time of such expiration or termination had such rights, options or
warrants, to the extent outstanding immediately prior to such expiration or termination, never been
issued.

          If any dividend or distribution is declared and the Conversion Rate is adjusted pursuant to
Section 10.05 on account of such dividend or distribution, but such dividend or distribution is
thereafter not paid or made, the Conversion Rate shall again be adjusted to the Conversion Rate
which would then be in effect had such dividend or distribution not been declared.

          No adjustment to the Conversion Rate need be made pursuant to Section 10.05 for a transaction
if Holders are to participate in the transaction without conversion on a basis and with notice that
the Board of Directors determines in good faith to be fair and appropriate in light

60

 

of the basis and notice on which holders of Common Stock participate in the transaction (which
determination shall be described in a Board Resolution).

          Notwithstanding anything herein to the contrary, in no event shall the Conversion Rate be
increased pursuant to Section 10.05(d) or Section 10.05(e) to the extent, but only to the extent,
such increase shall cause the Conversion Rate applicable to such Security to exceed ___shares
per $1,000 principal amount (the “BCF Adjustment Cap”); provided, however, that the BCF Adjustment
Cap shall be adjusted in the same manner in which the Conversion Rate is to be adjusted pursuant to
this Article X for stock splits and combinations, stock dividends, reclassifications and similar
events.

     Section 10.07 Other Adjustments.

          In the event that, as a result of an adjustment made pursuant to Section 10.05 hereof, the
Holder of any Security thereafter surrendered for conversion shall become entitled to receive any
shares of Capital Stock other than shares of Common Stock, thereafter such other shares so
receivable upon conversion of any Security shall be subject to adjustment, including the Conversion
Rate with respect thereto, from time to time in a manner and on terms as nearly equivalent as
practicable to the provisions with respect to Common Stock contained in this Article X.

     Section 10.08 Adjustments for Tax Purposes.

          Except as prohibited by law the Company may (but is not obligated to) make such increases in
the Conversion Rate, in addition to those required by Section 10.05 hereof, as it determines to be
advisable in order that any stock dividend, subdivision of shares, distribution of rights to
purchase stock or securities or distribution of securities convertible into or exchangeable for
stock made by the Company or to its stockholders will not be taxable to the recipients thereof or
in order to diminish any such taxation.

     Section 10.09 Notice of Adjustment.

          Whenever the Conversion Rate is adjusted, the Company shall promptly mail to Holders at the
addresses appearing on the Registrar’s books a notice of the adjustment and file with the Trustee
and the Conversion Agent an Officer’s Certificate briefly stating the facts requiring the
adjustment and the manner of computing it. The certificate shall be conclusive evidence of the
correctness of such adjustment.

     Section 10.10 Notice of Certain Transactions.

          In the event that:

	 	(1)	 	the Company takes any action, or becomes aware
of any event, which would require an adjustment in the Conversion Rate,
	 
	 	(2)	 	the Company takes any action that would require
a supplemental indenture pursuant to Section 10.11, or

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

the Company shall mail to Holders at the addresses appearing on the Registrar’s books, and the
Trustee and the Conversion Agent, a written notice stating the proposed record, effective or
expiration date, as the case may be, of any transaction referred to in clause (1), (2) or (3) of
this Section 10.10. The Company shall mail such notice at least twenty (20) calendar days before
such date; however, failure to mail such notice or any defect therein shall not affect the validity
of any transaction referred to in clause (1), (2) or (3) of this Section 10.10.

     Section 10.11 Effect of Reclassifications, Consolidations, Mergers, Binding Share
Exchanges or Sales on Conversion Privilege.

          Except as provided in Section 10.14(e), if any of the following shall occur, namely: (i) any
reclassification or change in the Common Stock issuable upon conversion of Securities (other than a
change only in par value, or from par value to no par value, or from no par value to par value, or
as a result of a subdivision or combination of Common Stock), (ii) any consolidation, merger or
binding share exchange to which the Company is a party other than a merger in which the Company is
the continuing Person and which does not result in any reclassification of, or change (other than a
change in name, or par value, or from par value to no par value, or from no par value to par value
or as a result of a subdivision or combination) in, the Common Stock or (iii) any sale, transfer,
lease, conveyance or other disposition of all or substantially all of the property or assets of the
Company or consummation of a similar transaction, in each case pursuant to which the Common Stock
would be converted into or exchanged for, or would constitute solely the right to receive, cash,
securities or other property, then the Company or such successor or purchasing Person, as the case
may be, shall execute and deliver to the Trustee a supplemental indenture in form reasonably
satisfactory to the Trustee providing that, at and after the effective time of such
reclassification, change, consolidation, merger, binding share exchange, sale, transfer, lease,
conveyance or disposition, the Holder of each Security then outstanding shall have the right to
convert such Security (if otherwise convertible pursuant to this Article X) into the kind and
amount of cash, securities or other property (collectively, “Reference Property”) receivable upon
such reclassification, change, consolidation, merger, binding share exchange, sale, transfer,
lease, conveyance, disposition or similar transaction by a holder of a number of shares of Common
Stock equal to the product of the principal amount of such Security and the Conversion Rate in
effect immediately prior to such reclassification, change, consolidation, merger, binding share
exchange, sale, transfer, lease, conveyance, disposition or similar transaction (assuming, if
holders of Common Stock shall have the opportunity to elect the form of consideration to receive
pursuant to such reclassification, change, consolidation, merger, binding share exchange, sale,
transfer, lease, conveyance or disposition, that the Collective Election shall have been made with
respect to such election); provided, however, that at and after the effective time of such
reclassification, change, consolidation, merger, binding share exchange, sale, transfer, lease,
conveyance or disposition, the Principal Return payable hereunder upon conversion of such Security
shall continue to be payable in cash, the Daily Conversion Value and Daily Share Amount shall be
calculated based on the fair value of the Reference Property instead of the Closing Sale Price per
share of Common Stock and the Daily Share Amount shall be payable, at the Company’s option in cash,
Reference Property or a combination thereof pursuant to the procedures set forth in Section
10.02(h). If holders of Common Stock shall have the opportunity to elect (the

62

 

“Collective
Election”) the form of consideration to receive pursuant to such reclassification, change,
consolidation, merger, binding share exchange, sale, transfer, lease, conveyance or disposition,
then the Company shall make adequate provision to give Holders, treated as a single class, a
reasonable opportunity to elect the form of such consideration for purposes of determining the
composition of the Reference Property referred to in the immediately preceding sentence, and once
such election is made, such election shall apply to all Holders after the effective time of such
reclassification, change, consolidation, merger, binding share exchange, sale, transfer, lease,
conveyance or disposition. Such Collective Election shall be determined based on the weighted
average of the elections made by Holders of the Securities who participate in such determination,
shall be subject to any limitations to which all of the holders of Common Stock are subject, such
as pro rata reductions applicable to any portion of the consideration payable in such
reclassification, change, consolidation, merger, binding share exchange, sale, transfer, lease,
conveyance or disposition, and shall be conducted in such a manner as to be completed by the close
of business on the actual effective date of such reclassification, change, consolidation, merger,
binding share exchange, sale, transfer, lease, conveyance or disposition. The supplemental
indenture referred to in the first sentence of this paragraph shall provide for adjustments,
including with respect to the Conversion Rate, which shall be as nearly equivalent as may be
practicable to the adjustments provided for in this Article X. The foregoing, however, shall not
in any way affect the right a Holder of a Security may otherwise have, pursuant to Section
10.05(c), Section 10.05(b) or Section 10.13, to receive rights or warrants upon conversion of a
Security. If, in the case of any such consolidation, merger, binding share exchange, sale,
transfer, lease, conveyance or disposition, the stock or other securities and property (including
cash) receivable thereupon by a holder of Common Stock includes shares of stock or other securities
and property of a Person other than the successor or purchasing Person, as the case may be, in such
consolidation, merger, binding share exchange, sale, transfer, lease, conveyance or disposition,
then such supplemental indenture shall also be executed by such other Person and shall contain such
additional provisions to protect the interests of the Holders of the Securities as the Board of
Directors in good faith shall reasonably determine necessary by reason of the foregoing (which
determination shall be described in a Board Resolution). The provisions of this Section 10.11
shall similarly apply to successive consolidations, mergers, binding share exchanges, sales,
transfers, leases, conveyances or dispositions.

          In the event the Company shall execute a supplemental indenture pursuant to this Section
10.11, the Company shall promptly file with the Trustee and the Conversion Agent an Officer’s
Certificate briefly stating the reasons therefor, the kind or amount of shares of stock or
securities or property (including cash) receivable by Holders of the Securities upon the conversion
of their Securities after any such reclassification, change, consolidation, merger, binding share
exchange, sale, transfer, lease, conveyance or disposition and any adjustment to be made with
respect thereto.

     Section 10.12 Disclaimer of the Trustee and the Conversion Agent.

          Neither of the Trustee nor the Conversion Agent shall have any duty to determine when an
adjustment under this Article X should be made, how it should be made or what such adjustment
should be, but each may accept as conclusive evidence of the correctness of any such adjustment,
and shall be protected in relying upon, the Officer’s Certificate with respect thereto which the
Company is obligated to file with the Trustee and the Conversion Agent pursuant to

63

 

Section 10.09 hereof. Neither of the Trustee nor the Conversion Agent makes any
representation as to the validity or value of any securities or assets issued upon conversion of
Securities, and none of them shall be responsible for the failure by the Company to comply with any
provisions of this Article X.

          Neither of the Trustee nor the Conversion Agent shall be under any responsibility to determine
the correctness of any provisions contained in any supplemental indenture executed pursuant to
Section 10.11, but each of them may accept as conclusive evidence of the correctness thereof, and
shall be protected in relying upon, an Opinion of Counsel and the Officer’s Certificate with
respect thereto which the Company is obligated to file with the Trustee pursuant to Section 10.11
hereof.

     Section 10.13 Rights Distributions Pursuant to Stockholders’ Rights Plans.

          In the event that the Company implements a shareholders’ rights plan after the date hereof,
the Company shall provide that the Holders will receive, upon conversion of their Securities, to
the extent such Holders receive shares of Common Stock upon such conversion, the associated rights
issued under such shareholders’ rights plan, unless prior to conversion such rights have separated
from the Common Stock, expired, terminated or been redeemed in accordance with such shareholders’
rights plan. If such rights shall have separated from the Common Stock prior to conversion by a
Holder, then for purposes of Section 10.05 and Section 10.06, such
separation shall be treated as a distribution of such rights and the Conversion Rate shall be adjusted pursuant to Section 10.05(b) or Section
10.05(c), as applicable.

     Section 10.14 Increased Conversion Rate Applicable to Certain Notes Surrendered in
Connection with Make-Whole Fundamental Changes.

          (a) Notwithstanding anything herein to the contrary, the Conversion Rate applicable to each
Security that is surrendered for conversion, in accordance with this Article X, at any time during
the period (the “Make-Whole Conversion Period”) that begins on, and includes, the date that is
thirty (30) calendar days prior to the date originally announced by the Company as the anticipated
effective date of a Make-Whole Fundamental Change (which anticipated effective date the Company
shall disclose, in good faith, in the written notice, public announcement and publication referred
to in Section 10.14(d)) and ends on, and includes, the date that is thirty (30) Business Days after
the actual effective date of such Make-Whole Fundamental Change (or, if such Make-Whole Fundamental
Change also constitutes a Fundamental Change, the Fundamental Change Repurchase Date applicable to
such Fundamental Change) shall be increased to an amount equal to the Conversion Rate that would,
but for this Section 10.14, otherwise apply to such Security pursuant to this Article X, plus an
amount equal to the Make-Whole Applicable Increase; provided, however, that such increase to the
Conversion Rate shall not apply if either:

     (i) such Make-Whole Fundamental Change constitutes a Public Acquirer Fundamental Change with
respect to which the Company shall have duly made, and given full effect to, an election, pursuant
to and in accordance with Section 10.14(e), to make an Acquirer Stock Conversion Right Adjustment;
or

64

 

          (ii) such Make-Whole Fundamental Change is announced by the Company but shall not be
consummated.

          The additional consideration payable hereunder on account of any Make-Whole Applicable
Increase with respect to a Security surrendered for conversion is herein referred to as the
“Make-Whole Consideration.”

          The Make-Whole Consideration due upon a conversion of a Security by a Holder shall be paid as
soon as practicable after the Conversion Date of such conversion, but in no event later than the
later of (1) the date such Holder surrenders such Security for such conversion and (2) the third
(3rd) Business Day after the Effective Date of the applicable Make-Whole Fundamental Change.

          (b) As
used herein, “Make-Whole Applicable Increase” shall mean, with respect to a Make-Whole
Fundamental Change, the amount, set forth in the following table, which corresponds to the
effective date of such Make-Whole Fundamental Change (the “Effective Date”) and the Applicable
Price of such Make-Whole Fundamental Change:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Effective Date	 
	Applicable	 	October 1,	 	 	October 1,	 	 	October 1,	 	 	October 1,	 	 	October 1,	 	 	October 1,	 
	Price	 	2006	 	 	2007	 	 	2008	 	 	2009	 	 	2010	 	 	2011	 
	 
	$____
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	$____
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	$____
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	$____
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	$____
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	$____
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	$____
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	$____
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	$____
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	$____
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	$____
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	$____
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	$____
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	$____
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	$____
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	$____
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	$____
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	$____
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	$____
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	$____
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	$____
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	$____
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

provided, however, that:

65

 

          (i) if the actual Applicable Price of such Make-Whole Fundamental Change is between two (2)
prices listed in the table above under the column titled “Applicable Price,” or if the actual
Effective Date of such Make-Whole Fundamental Change is between two dates listed in the table above
in the row immediately below the title “Effective Date,” then the Make-Whole Applicable Increase
for such Make-Whole Fundamental Change shall be determined by linear interpolation between the
Make-Whole Applicable Increases set forth for such two prices, or for such two dates based on a
three hundred and sixty five (365) day year, as applicable;

          (ii) if the actual Applicable Price of such Make-Whole Fundamental Change is greater than
$     per share (subject to adjustment as provided in Section 10.14(b)(iii)), or if the actual
Applicable Price of such Make-Whole Fundamental Change is less than $     per share (subject to
adjustment as provided in Section 10.14(b)(iii)), then the Make-Whole Applicable Increase shall be
equal to zero (0);

          (iii) if an event occurs that requires, pursuant to this Article X (other than solely pursuant
to this Section 10.14), an adjustment to the Conversion Rate, then, on the date and at the time
such adjustment is so required to be made, each price set forth in the table above under the column
titled “Applicable Price” shall be deemed to be adjusted so that such price, at and after such
time, shall be equal to the product of (1) such price as in effect immediately before such
adjustment to such price and (2) a fraction whose numerator is the Conversion Rate in effect
immediately before such adjustment to the Conversion Rate and whose denominator is the Conversion
Rate to be in effect, in accordance with this Article X, immediately after such adjustment to the
Conversion Rate;

          (iv) each Make-Whole Applicable Increase amount set forth in the table above shall be adjusted
in the same manner in which, and for the same events for which, the Conversion Rate is to be
adjusted pursuant to Section 10.01 through Section 10.13; and

          (v) in no event shall the Conversion Rate applicable to any Security be increased pursuant to
this Section 10.14 to the extent, but only to the extent, such increase shall cause the Conversion
Rate applicable to such Security to exceed
     shares per $1,000 principal amount (the
“BCF
Make-Whole Cap”); provided, however, that the BCF Make-Whole Cap shall be adjusted in the same
manner in which, and for the same events for which, the Conversion Rate is to be adjusted pursuant
to this Article X.

          (c) As used herein, “Applicable Price” shall have the following meaning with respect to a
Make-Whole Fundamental Change: (I) if such Make-Whole Fundamental Change constitutes a Common Stock
Change Make-Whole Fundamental Change and the consideration (excluding cash payments for fractional
shares or pursuant to statutory appraisal rights) for the Common Stock in such Make-Whole
Fundamental Change consists solely of cash, then the “Applicable Price” with respect to such
Make-Whole Fundamental Change shall be equal to the cash amount paid per share of Common Stock in
such Make-Whole Fundamental Change; (II) if such Make-Whole Fundamental Change constitutes an Asset
Sale Make-Whole Fundamental Change and the consideration paid for the property and assets of the
Company consists solely of cash, then the “Applicable Price” with respect to such Make-Whole
Fundamental Change shall be equal to the cash amount paid for the property and assets of the
Company, expressed as an amount per share of Common Stock outstanding on the Effective

66

 

           Date of such Make-Whole Fundamental Change; and (III) in all other circumstances, the
“Applicable Price” with respect to such Make-Whole Fundamental Change shall be equal to the average
of the Closing Sale Prices per share of Common Stock for the five (5) consecutive Trading Days
immediately preceding the Effective Date of such Make-Whole Fundamental Change, which average shall
be appropriately adjusted by the Board of Directors, in its good faith determination (which
determination shall be described in a Board Resolution), to account for any adjustment, pursuant
hereto, to the Conversion Rate that shall become effective, or any event requiring, pursuant
hereto, an adjustment to the Conversion Rate where the Ex Date of such event occurs, at any time
during such five (5) consecutive Trading Days.

          (d) At least thirty (30) calendar days before the first anticipated effective date of each
proposed Make-Whole Fundamental Change, the Company shall mail to each Holder, in accordance with
Section 14.02, written notice of, and shall publicly announce, through a reputable national
newswire service, and publish on the Company’s website, the anticipated effective date of such
proposed Make-Whole Fundamental Change. Each such notice, announcement and publication shall also
state (I) that the Company either (A) has elected, in accordance with Section 10.14(e), to make an
Acquirer Stock Conversion Right Adjustment with respect to such Make-Whole Fundamental Change in
lieu of increasing the Conversion Rate pursuant to Section 10.14(a) or (B) has elected not to make
an Acquirer Stock Conversion Right Adjustment with respect to such Make-Whole Fundamental Change;
and (II) if the Company has elected not to make such Acquirer Stock Conversion Right Adjustment
with respect to such Make-Whole Fundamental Change, that, in connection with such Make-Whole
Fundamental Change, the Company shall increase, in accordance herewith, the Conversion Rate
applicable to Securities entitled as provided herein to such increase (along with a description of
how such increase shall be calculated and the time periods during which Securities must be
surrendered in order to be entitled to such increase). No later than the third Business Day after
the Effective Date of each Make-Whole Fundamental Change, the Company shall mail, in accordance
with Section 14.02, written notice of, and shall publicly announce, through a reputable national
newswire service, and publish on the Company’s website, such Effective Date and the Make-Whole
Applicable Increase applicable to such Make-Whole Fundamental Change.

          (e) Notwithstanding anything to the contrary in this Section 10.14, if the Company shall make
any mailing, announcement or publication referred to in Section 10.14(d) in respect of a Make-Whole
Fundamental Change that shall also constitute a Public Acquirer Fundamental Change, then the
Company shall have the right to, in lieu of increasing the Conversion Rate pursuant to Section
10.14(a) in connection with such Make-Whole Fundamental Change, cause the right to convert the
Securities in accordance with this Article X to change such that, from and after the effective time
of such Public Acquirer Fundamental Change, the Holder of each Security then outstanding shall have
the right to convert such Security (if otherwise convertible pursuant to this Article X) solely
into shares of the Public Acquirer Common Stock applicable to such Public Acquirer Fundamental
Change (except that, at and after such effective time, the Principal Return payable hereunder upon
conversion of such Security shall continue to be payable in cash, the Daily Conversion Value and
Daily Share Amount shall be calculated by reference to the Closing Sale Price per share of such
Public Acquirer Common Stock as opposed to the Closing Sale Price per share of the Common Stock and
the Daily Share Amount shall be payable, at the Company’s option, in cash, Public Acquirer Common
Stock (instead of Common Stock), or a combination thereof pursuant to the procedures

67

 

           set forth in Section 10.02(h)), at an initial Conversion Rate (which shall take effect at such
effective time, but which shall thereafter be subject to adjustment in the same manner in which,
and for the same events for which, the Conversion Rate is to be adjusted pursuant to this Article
X) equal to the Conversion Rate in effect immediately before such effective time multiplied by a
fraction (I) whose numerator is the fair market value (as determined in good faith by the Board of
Directors, which determination shall be described in a Board Resolution), as of such effective time
of such Public Acquirer Fundamental Change, of the cash, securities and other property paid or
payable pursuant to such Public Acquirer Fundamental Change per share of Common Stock and (II)
whose denominator is the average of the last reported sale prices per share of such Public Acquirer
Common Stock for the five (5) consecutive trading days commencing on, and including, the trading
day immediately after the effective date of such Public Acquirer Fundamental Change, which average
shall be appropriately adjusted by the Board of Directors, in its good faith determination (which
determination shall be described in a Board Resolution), to account for any event that, assuming
such Public Acquirer Common Stock were Common Stock, would require, pursuant hereto, an adjustment
to the Conversion Rate to become effective, or any such event whose Ex Date occurs, at any time
during such five (5) consecutive trading days. Any such change in the right to convert the
Securities in accordance with this Section 10.14(e) is herein referred to as an “Acquirer Stock
Conversion Right Adjustment.”

          If the Company shall have elected, in accordance with this Section 10.14(e), to make an
Acquirer Stock Conversion Right Adjustment with respect to a Public Acquirer Fundamental Change,
then:

          (i) the Company shall cause there to be executed and delivered to the Trustee a supplemental
indenture in form reasonably satisfactory to the Trustee, which supplemental indenture shall (a)
give due effect to such election in accordance with this Section 10.14(e), including, without
limitation, evidencing a binding and enforceable obligation of the issuer of the applicable Public
Acquirer Common Stock to satisfy the right of Holders to convert Securities in accordance with this
Article X and this Section 10.14(e); (b) be executed by, without limitation, such issuer; (c) which
supplemental indenture shall provide for such adjustments, including with respect to the Conversion
Rate, and contain such additional provisions to protect the interests of the Holders of the
Securities, as the Board of Directors in good faith shall reasonably determine (which determination
shall be described in a Board Resolution); and (d) be in full force and effect no later than the
effective time of such Public Acquirer Fundamental Change;

          (ii) the Company shall promptly file with the Trustee an Officer’s Certificate briefly stating
the reasons for such supplemental indenture, the nature of the change in the conversion right
pursuant to such Acquirer Stock Conversion Right Adjustment and the Conversion Rate as adjusted
therefor;

          (iii) the provisions of Section 10.11 shall not apply to such Public Acquirer Fundamental
Change, provided such Public Acquirer Fundamental Change shall have been duly given effect in
accordance with this Section 10.14(e); and

          (iv) such election shall be irrevocable with respect to such Public Acquirer Fundamental
Change and shall be deemed to have been made at the time the Company shall, with respect to such
Public Acquirer Fundamental Change, mail the first notice, or make the first

68

 

           public announcement or publication, whichever shall occur earlier, referred to in Section
10.14(d) (it being understood that the Company shall discharge its obligations hereunder in good
faith in determining whether an announced transaction and a completed transaction are deemed, for
purposes of this clause (iv), to be the same Public Acquirer Fundamental Change despite differences
in the announced terms and the terms as such transaction was consummated); provided, however, that
the Company shall not be obligated to give effect to such an election with respect to a Public
Acquirer Fundamental Change that has been announced by the Company but that shall not be
consummated.

          For avoidance of doubt, any change in the right of Holders, made pursuant to this Section
10.14(e), to convert Securities shall apply to all Holders.

          (f) For avoidance of doubt, the provisions of this Section 10.14 shall not affect or diminish
the Company’s obligations, if any, pursuant to Article IV with respect to a Public Acquirer
Fundamental Change or Make-Whole Fundamental Change.

          (g) Nothing in this Section 10.14 shall prevent an adjustment to the Conversion Rate pursuant
to Section 10.05 in respect of a Make-Whole Fundamental Change or a Public Acquirer Fundamental
Change.

ARTICLE XI.

[RESERVED]

ARTICLE XII.

[RESERVED]

ARTICLE XIII.

TAX TREATMENT

     Section 13.01 Tax Treatment.

          (a) The Company agrees, and by acceptance of beneficial ownership interest in the Securities
each Holder of the Securities will be deemed to have agreed, for U.S. federal income tax purposes
(A) to treat the Securities as indebtedness that is subject to Treas. Reg. Sec. 1.1275-4 (the
“Contingent Payment Regulations”) and, for purposes of the Contingent Payment Regulations, to treat
the cash and the fair market value of any stock beneficially received by a Holder upon any
conversion of the Securities as a contingent payment and (B) to be bound by the Company’s
determination of the “comparable yield” and “projected payment schedule,” within the meaning of the
Contingent Payment Regulations, with respect to the Securities. A Holder may obtain the issue
price, amount of original issue discount, issue date, yield to maturity, comparable yield and
projected payment schedule for the Securities by

69

 

           submitting a written request for such information to the Company at the following address:
Diodes Incorporated, Attention: Chief Financial Officer, 3050 East Hillcrest Drive, Westlake
Village, California 91362.

          (b) the Company shall file with the Trustee promptly at the end of each calendar year (A) a
written notice specifying the amount of original issue discount for United States federal income
tax purposes accrued on outstanding Securities as of the end of such year and (B) such other
specific information relating to such original issue discount that the Company determines to be
relevant under the Internal Revenue Code of 1986, as amended from time to time, including the
amount of any adjustment made under the noncontingent bond method to account for the amount of any
difference between the amount of an actual payment and the amount of a projected payment; and

          (c) the Company acknowledges and agrees, and each Holder and any beneficial holder of a
Security by its purchase of a Security shall be deemed to acknowledge and agree that (A) the
comparable yield and the projected payment schedule are not determined for any purpose other than
for the purpose of applying the CPDI Regulations to the Security and (B) the comparable yield and
the projected payment schedule do not constitute a projection or representation regarding the
future stock price or the actual amounts payable on the Securities.

     Section 13.02 Tax Withholding Obligations.

          By purchasing an interest in a Security, each Holder and each Person (including an entity)
that acquires a direct or indirect beneficial interest in a Security hereby agrees:

          (a) that the Company may withhold any tax, to the extent it is required to do so under any law
or regulation (whether based on accrued, constructive or cash income), from any payments of cash or
shares of Common Stock (including Common Stock to be paid upon conversion) to be made to a Holder
or Person with respect to such Holder’s or Person’s ownership of a direct or indirect beneficial
interest in a Security or in shares of Common Stock received upon conversion of a Security; and

          (b) that if the Company pays any withholding taxes on behalf of a Holder or Person with
respect to such Holder’s or Person’s ownership of a direct or indirect beneficial interest in a
Security, as a result of an adjustment to the Conversion Rate or a failure to make an adjustment to
the Conversion Rate, the Company may, in its discretion, reduce any payments to such Holder or
Person of cash or shares of Common Stock (including any Common Stock to be paid upon conversion) on
the Security by the amounts of any such withholding taxes paid.

ARTICLE XIV.

MISCELLANEOUS

     Section 14.01 Trust Indenture Act Controls.

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

70

 

     Section 14.02 Notices.

          Any notice or communication by the Company or the Trustee to one another shall be deemed to be
duly given if made in writing and delivered:

          (a) by hand (in which case such notice shall be effective upon delivery);

          (b) by facsimile (in which case such notice shall be effective upon receipt of confirmation of
good transmission thereof); or

          (c) by overnight delivery by a nationally recognized courier service (in which case such
notice shall be effective on the Business Day immediately after being deposited with such courier
service),

in each case to the other party’s address or facsimile number, as applicable, set forth in this
Section 14.02. Each of the Company and the Trustee, by notice to the others, may designate
additional or different addresses or facsimile numbers for subsequent notices or communications.

          Any notice or communication to a Holder shall be mailed to its address shown on the register
kept by the Registrar. Failure to mail a notice or communication to a Holder or any defect in it
shall not affect its sufficiency with respect to other Holders.

          If a notice or communication is mailed in the manner provided above, it is duly given, whether
or not the addressee receives it.

          If the Company mails a notice or communication to Holders, it shall mail a copy to the Trustee
at the same time. If the Trustee is required, pursuant to the express terms of this Indenture or
the Securities, to mail a notice or communication to Holders, the Trustee shall also mail a copy of
such notice or communication to the Company.

          All notices or communications shall be in writing.

          The Company’s address is:

Diodes Incorporated

3050 East Hillcrest Drive

Westlake Village, California 91362

Attention:    Chief Financial Officer

Facsimile:     (805) 446-4800

Phone:          (805) 446-4850

71

 

          The Trustee’s address is:

Union Bank of California, N.A.

120 South San Pedro Street, 4th Floor

Los Angeles, California 90012

Attention:    Corporate Trust Services

     Section 14.03 Communication By Holders With Other Holders.

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

     Section 14.04 Certificate and Opinion as to Conditions Precedent.

          Upon any request or application by the Company to the Trustee to take any action under this
Indenture, the Company shall furnish to the Trustee:

          (i) an Officer’s Certificate stating that, in the opinion of the signatories to such Officer’s
Certificate, all conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with; and

          (ii) an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions
precedent have been complied with.

          Each signatory to an Officer’s Certificate or an Opinion of Counsel may (if so stated) rely,
effectively, upon an Opinion of Counsel as to legal matters and an Officer’s Certificate or
certificates of public officials as to factual matters if such signatory reasonably and in good
faith believes in the accuracy of the document relied upon.

     Section 14.05 Statements Required in Certificate or Opinion.

          Each Officer’s Certificate or Opinion of Counsel with respect to compliance with a condition
or covenant provided for in this Indenture shall include:

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

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

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

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

72

 

     Section 14.06 Rules By Trustee and Agents.

          The Trustee may make reasonable rules for action by or at a meeting of Holders. The
Registrar, Paying Agent and Conversion Agent may make reasonable rules and set reasonable
requirements for their respective functions.

     Section 14.07 Legal Holidays.

          A “Legal Holiday” is a Saturday, a Sunday or a day on which banking institutions are not
required to be open in the City of New York, in the State of New York or in the city in which the
Trustee administers its corporate trust business. If a payment date is a Legal Holiday at a place
of payment, payment may be made at that place on the next succeeding day that is not a Legal
Holiday, and no interest shall accrue on that payment for the additional period of time.

          A “Business Day” is a day other than a Legal Holiday.

     Section 14.08 Duplicate Originals.

          The parties may sign any number of copies of this Indenture. Each signed copy shall be an
original, but all of them together represent the same agreement. Delivery of an executed
counterpart by facsimile shall be effective as delivery of a manually executed counterpart thereof.

     Section 14.09 Governing Law.

          THE INTERNAL LAWS OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS INDENTURE
AND THE SECURITIES, INCLUDING WITHOUT LIMITATION, SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK
GENERAL OBLIGATIONS LAW AND NEW YORK CIVIL PRACTICE LAWS AND RULES 327(B).

     Section 14.10 No Adverse Interpretation of Other Agreements.

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

     Section 14.11 Successors.

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

     Section 14.12 Separability.

          In case any provision in this Indenture or in the Securities shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby and a Holder shall have no claim therefor against any party
hereto.

73

 

Section 14.13 Table of Contents, Headings, Etc.

          The Table of Contents, Cross-Reference Table and headings of the Articles and Sections of this
Indenture have been inserted for convenience of reference only, are not to be considered a part
hereof and shall in no way modify or restrict any of the terms or provisions hereof.

     Section 14.14 Calculations in Respect of the Securities.

          The Company and its agents shall make all calculations under this Indenture and the Securities
(including, without limitation, the Trading Price, the Closing Sale Price, the Current Market
Price, the Daily Principal Returns, the Daily Conversion Values, the Daily Share Amount, the
Conversion Price and any adjustments to the Conversion Rate pursuant hereto and the amount of
interest payable on the Securities) in good faith. In the absence of manifest error, such
calculations shall be final and binding on all Holders. The Company shall provide a copy of such
calculations to the Trustee as required hereunder, and, absent such manifest error, each of the
Trustee shall be entitled to rely on the accuracy of any such calculation without independent
verification. Neither the Trustee nor the Conversion Agent shall have any obligation to calculate
or determine or verify the calculation or determination of the Trading Price, the Closing Sale
Price, the Current Market Price, the Conversion Rate, the Conversion Price, the Daily Principal
Return, the Daily Conversion Values or the Daily Share Amount.

     Section 14.15 No Personal Liability of Directors, Officers, Employees or Stockholders.

          None of the Company’s past, present or future directors, officers, employees or shareholders,
as such, shall have any liability for any of the Company’s obligations under this Indenture or the
Securities or for any claim based on, or in respect or by reason of, such obligations or their
creation. By accepting a Security, each holder waives and releases all such liability. This
waiver and release is part of the consideration for the issue of the Securities.

     Section 14.16 USA Patriot Act.

          The Company acknowledges that, in accordance with Section 326 of the USA Patriot Act, the
Trustee, like all financial institutions, is required to obtain, verify and record information that
identifies each person or legal entity that opens an account. The Company agrees that it will
provide the Trustee with such information as it may request in order for the Trustee to satisfy the
requirements of the USA Patriot Act.

[The Remainder of This Page Intentionally Left Blank; Signature Page Follows]

74

 

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

	 	 	 	 	 
	 	DIODES INCORPORATED

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	UNION BANK OF CALIFORNIA, N.A., as Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

EXHIBIT A

[Face of Security]

DIODES INCORPORATED

Certificate No.

[INSERT GLOBAL SECURITY LEGEND, AND TAX LEGEND, AS REQUIRED]

     % Convertible Senior Note due 2026

CUSIP No.                     

     Diodes Incorporated, a Delaware corporation (the “Company”), for value received, hereby
promises to pay to Cede & Co., or its registered assigns, the principal sum of
dollars ($ ) on October 1, 2026 and to pay interest thereon, as provided on the reverse hereof,
until the principal and any unpaid and accrued interest are paid or duly provided for.

     Interest Payment Dates: April 1 and October 1, with the first payment to be made on April 1,
2007.

     Record Dates: March 15 and September 15.

     The provisions on the back of this certificate are incorporated as if set forth on the face
hereof.

A-1

 

     IN WITNESS WHEREOF, Diodes Incorporated has caused this instrument to be duly signed.

	 	 	 	 	 
	 	DIODES INCORPORATED

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Dated:

CERTIFICATE OF AUTHENTICATION

This is one of the Securities referred to in the within-mentioned Indenture.

Union Bank of California, N.A., as Authenticating Agent

By: Union Bank of California, N.A.

			
	By:	 	
 

Authorized Signatory

Dated:

A-2

 

[REVERSE OF SECURITY]

DIODES INCORPORATED

     % Convertible Senior Note due 2026

     1. Interest. Diodes Incorporated, a Delaware corporation (the “Company”), promises to pay
interest on the principal amount of this Security at the rate per annum shown above. The Company
will pay interest, payable semi-annually in arrears, on April 1 and October 1 of each year, with
the first payment to be made on April 1, 2007. Interest on the Securities will accrue on the
principal amount from, and including, the most recent date to which interest has been paid or
provided for or, if no interest has been paid, from, and including, October      , 2006, in each case
to, but excluding, the next interest payment date or Maturity Date, as the case may be. Interest
will be computed on the basis of a 360-day year of twelve 30-day months.

     In addition, if the average Contingent Interest Trading Price of a Security for the five (5)
consecutive trading day period (the “Contingent Interest Measurement Period”) immediately preceding
the first day of any six (6) month period (each a “Contingent Interest Period”) from and including
an interest payment date to but excluding the next interest payment date, commencing with the six
(6) month period beginning October 1, 2011, is equal to or greater than one hundred and twenty
percent (120%) of the principal amount of such Security, then the Company shall pay contingent
interest (“Contingent Interest”) to the Holders.

     The amount of Contingent Interest payable per $1,000 principal amount of Securities in respect
of any Contingent Interest Period, if applicable, shall be equal to      % (     % per year payable
semi-annually) of the average Contingent Interest Trading Price per $1,000 principal amount of the
Securities during the Contingent Interest Measurement Period. Contingent Interest, if any, shall
accrue from the first day of the applicable Contingent Interest Period through, but excluding, the
interest payment date at the end of such Contingent Interest Period, and Contingent Interest shall
be payable to Holders in the same manner as regular cash interest. Regular cash interest shall
continue to accrue at the per annum rate of      % on the principal amount of the Securities whether
or not Contingent Interest is paid.

     The Company shall instruct the Bid Solicitation Agent to determine the daily Contingent
Interest Trading Prices of the Securities during each Contingent Interest Measurement Period during
which any Securities are outstanding. Upon determining that the Securities shall begin to accrue
Contingent Interest during a Contingent Interest Period, the Company shall, on or before the start
of such Contingent Interest Period, publicly announce, through a reputable national newswire
service, and publish on the Company’s website, the fact that Contingent Interest has become payable
and the amount of such Contingent Interest payable per $1,000 principal amount of Securities.

     The “Contingent Interest Trading Price” of a Security on any trading day means the average
secondary market bid quotations obtained by the Bid Solicitation Agent for five million dollars
($5,000,000) principal amount of Securities at approximately 4:00 p.m., New York City time, on such
trading day from three (3) independent nationally recognized securities

A-3

 

dealers selected by the
Company; provided, however, that if the Bid Solicitation Agent
reasonably determines that it can obtain only two (2) such bids, then the average of such two
(2) bids shall instead be used, and if the Bid Solicitation Agent reasonably determines that it can
obtain only one (1) such bid, then such one (1) bid shall be used; provided further, that if the
Bid Solicitation Agent reasonably determines that it cannot obtain at least one (1) such bid, then
the Contingent Interest Trading Price per $1,000 principal amount of the notes shall be determined
by a nationally recognized securities dealer retained by the Company for such purpose.

     2. Maturity. The Securities will mature on October 1, 2026.

     3. Method of Payment. Except as provided in the Indenture (as defined below), the Company
will pay interest on the Securities to the persons who are Holders of record of Securities at the
close of business on the record date set forth on the face of this Security next preceding the
applicable interest payment date; provided, however, that on the Maturity Date, the Company will
pay interest on the Securities to the Holder to whom the Company pays the principal amount.
Holders must surrender Securities to a Paying Agent to collect the principal amount, Redemption
Price, Option Purchase Price or Fundamental Change Repurchase Price of the Securities, plus, if
applicable, accrued and unpaid interest, if any, payable as herein provided upon Redemption,
Purchase at Holder’s Option or Repurchase Upon Fundamental Change, as the case may be. The Company
will pay, in money of the United States that at the time of payment is legal tender for payment of
public and private debts, all amounts due in cash with respect to the Securities, which amounts
shall be paid (A) in the case this Security is in global form, by wire transfer of immediately
available funds to the account designated by the Depositary or its nominee; (B) in the case this
Security is held, other than in global form, by a Holder of more than five million dollars
($5,000,000) in aggregate principal amount of Securities, by wire transfer of immediately available
funds to the account within the United States of America specified by such Holder or, if such
Holder does not specify an account, by mailing a check to the address of such Holder set forth in
the register of the Registrar; and (C) in the case this Security is held, other than in global
form, by a Holder of five million dollars ($5,000,000) or less in aggregate principal amount of
Securities, by mailing a check to the address of such Holder set forth in the register of the
Registrar. If a payment date is a Legal Holiday at a place of payment, payment may be made at that
place on the next succeeding day that is not a Legal Holiday, and no interest shall accrue on that
payment for the additional period of time.

     4. Paying Agent, Registrar, Conversion Agent. Initially, Union Bank of California, N.A. (the
“Trustee”) will act as Paying Agent, Registrar and Conversion Agent. The Company may change any
Paying Agent, Registrar, Bid Solicitation Agent or Conversion Agent without notice.

     5. Indenture. The Company issued the Securities under an Indenture dated as of October      ,
2006 (the “Indenture”) between the Company and the Trustee. The terms of the Securities include
those stated in the Indenture and those made part of the Indenture by reference to the Trust
Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb) (the “TIA”) as amended and in effect from time
to time. The Securities are subject to all such terms, and Holders are referred to the Indenture
and the TIA for a statement of such terms. The Securities are general unsecured senior subordinate
obligations of the Company limited to $200,000,000

A-4

 

aggregate principal amount ($230,000,000 if the
Underwriters have elected to exercise in full the
Option to purchase up to an additional $30,000,000 aggregate principal amount of the
Securities), except as otherwise provided in the Indenture (except for Securities issued in
substitution for destroyed, mutilated, lost or stolen Securities). Terms used herein without
definition and which are defined in the Indenture have the meanings assigned to them in the
Indenture.

     6. Optional Redemption. The Company shall have the right, at the Company’s option, at any
time, and from time to time, on a Redemption Date on or after October 1, 2011, to redeem all or any
part of the Securities at a price payable in cash equal to one hundred percent (100%) of the
principal amount of the Securities to be redeemed, plus accrued and unpaid interest, if any, to,
but excluding, the Redemption Date, provided, however, that in no event shall any Redemption Date
be a Legal Holiday; provided, further, that if such Redemption Date is after the close of business
on a record date for the payment of an installment of interest and on or before the related
interest payment date, then the accrued and unpaid interest, if any, to, but excluding, such
interest payment date shall be paid on such interest payment date to the Holder of record of such
Securities (without any surrender of such Securities by such Holder) at the close of business on
such record date, and the Holder surrendering such Securities for Redemption shall receive only the
Redemption Price and shall not be entitled to any such interest unless such Holder was also the
Holder of record of such Securities at the close of business on such record date. The Company
shall make at least ten (10) semi-annual interest payments with respect to the Securities prior to
redeeming any Securities pursuant to this paragraph (including the interest payments on April 1,
2007 and October 1, 2011).

     7. Notice of Redemption. Notice of Redemption will be mailed at least thirty (30) calendar
days but not more than sixty (60) calendar days before the Redemption Date to each Holder of
Securities to be redeemed at its address appearing in the security register. Securities in
denominations larger than $1,000 principal amount may be redeemed in part but only in integral
multiples of $1,000 principal amount.

     8. Purchase by the Company at the Option of the Holder. Subject to the terms and conditions
of the Indenture, the Company shall become obligated to purchase, at the option of each Holder, the
Securities held by such Holder on October 1, 2011, October 1, 2016 and October 1, 2021 (each, an
“Option Purchase Date”) at an Option Purchase Price, payable in cash, equal to one hundred percent
(100%) of the principal amount of the Securities to be purchased, plus accrued and unpaid interest,
if any, to, but excluding, the applicable Option Purchase Date, upon delivery of a Purchase Notice
containing the information set forth in the Indenture, at any time from the opening of business on
the date that is twenty (20) Business Days prior to the applicable Option Purchase Date until the
close of business on the Business Day immediately preceding the applicable Option Purchase Date and
upon delivery of the Securities to the Paying Agent by the Holder as set forth in the Indenture;
provided, that if such Option Purchase Date is after the close of business on a record date for the
payment of an installment of interest and on or before the related interest payment date, then such
accrued and unpaid interest shall be paid on such interest payment date to the Holder of record of
such Securities (without any surrender of such Securities by such Holder) at the close of business
on such record date and the Holder surrendering such Securities for purchase shall receive only the
Option Purchase

A-5

 

Price and shall not be entitled to any such interest unless such Holder was also
the Holder of record of such Securities at the close of business on such record date.

     9. Repurchase at Option of Holder Upon a Fundamental Change. Subject to the terms and
conditions of the Indenture, in the event of a Fundamental Change, each Holder of the Securities
shall have the right, at the Holder’s option, to require the Company to repurchase such Holder’s
Securities including any portion thereof which is $1,000 in principal amount or any integral
multiple thereof on a date selected by the Company (the “Fundamental Change Repurchase Date”),
which date is no later than thirty five (35) days, nor earlier than twenty (20) days, after the
date on which notice of such Fundamental Change is mailed in accordance with the Indenture, at a
price payable in cash equal to one hundred percent (100%) of the principal amount of such Security,
plus accrued and unpaid interest to, but excluding, the Fundamental Change Repurchase Date;
provided, that if such Fundamental Change Repurchase Date is after the close of business a record
date for the payment of an installment of interest and on or before the related interest payment
date, then the accrued and unpaid interest, if any, to, but excluding, such interest payment date
shall be paid on such interest payment date to the Holder of record of such Securities (without any
surrender of such Securities by such Holder) at the close of business on such record date, and the
Holder surrendering such Securities for repurchase shall receive only the Fundamental Change
Repurchase Price and shall not be entitled to any such interest unless such Holder was also the
Holder of record of such Securities at the close of business on such record date.

     10. Conversion.

     Conversion Based on Closing Sale Price of Common Stock. Subject to earlier Redemption,
Purchase at Holder’s Option or Repurchase Upon Fundamental Change, Holders may surrender Securities
in integral multiples of $1,000 principal amount for conversion into cash or, at the Company’s
option, cash and shares of Common Stock on any Business Day of a calendar quarter after the
calendar quarter ending December 31, 2006, if the Closing Sale Price for each of twenty (20) or
more Trading Days in a period of thirty (30) consecutive Trading Days ending on the last Trading
Day of the immediately preceding calendar quarter exceeds one hundred and twenty percent (120%) of
the Conversion Price in effect on the last Trading Day of the immediately preceding calendar
quarter. Solely for purposes of determining whether the Securities shall have become convertible
pursuant to this paragraph, the Board of Directors shall, in its good faith determination, which
shall be described in a Board Resolution, make appropriate adjustments to the Closing Sale Prices
and/or such Conversion Price used to determine whether the Securities shall have become convertible
pursuant to this paragraph to account for any adjustments to the Conversion Rate which shall have
become effective, or any event requiring an adjustment to the Conversion Rate where the Ex Date of
such event occurs, during the period of thirty (30) consecutive Trading Days ending on the last
Trading Day of the immediately preceding calendar quarter.

     Conversion Upon Satisfaction of Trading Price Condition. Subject to earlier Redemption,
Purchase at Holder’s Option or Repurchase Upon Fundamental Change, Holders may surrender Securities
in integral multiples of $1,000 principal amount for conversion into cash or, at the Company’s
option, cash and shares of Common Stock during the five (5) consecutive Business Days immediately
after any five (5) consecutive Trading Day period (such

A-6

 

five (5) consecutive Trading Day period,
the “Note Measurement Period”) in which the average Trading Price per $1,000 principal amount of
the Securities was equal to or less than ninety eight percent (98%) of the average Conversion Value
(as defined below) during the Note
Measurement Period (such condition, the “Trading Price Condition”). The Bid Solicitation
Agent shall not have any obligation to determine the Trading Price unless the Company has requested
such determination in writing, and the Company shall have no obligation to make such request unless
a Holder provides the Company with reasonable evidence that the Trading Price per $1,000 principal
amount of the Securities would be equal to or less than ninety eight percent (98%) of the
Conversion Value. Upon receipt of such evidence, the Company shall instruct the Bid Solicitation
Agent in writing to determine the Trading Price per $1,000 principal amount of the Securities for
each of the five (5) successive Trading Days immediately after the Company receives such evidence
and on each Trading Day thereafter until the first Trading Day on which the Trading Price Condition
is no longer satisfied. For purposes of this paragraph, the “Conversion Value” per $1,000
principal amount of Securities, on a given Trading Day, means the product of the Closing Sale Price
on such Trading Day and the Conversion Rate in effect on such Trading Day.

     Conversion Based on Redemption. A Security, or portion of a Security, which has been called
for Redemption pursuant to Section 3.01 of the Indenture and paragraph 6 may be surrendered in
integral multiples of $1,000 principal amount for conversion into cash or, at the Company option,
cash and shares of Common Stock; provided, however, that such Security or portion thereof may be
surrendered for conversion pursuant to this paragraph only until the close of business on the
Business Day immediately preceding the Redemption Date.

     Conversion Upon Certain Distributions. Subject to earlier Redemption, Purchase at Holder’s
Option or Repurchase Upon Fundamental Change, if the Company takes any action, or becomes aware of
any event, that would require an adjustment to the Conversion Rate pursuant to Sections 10.05(b),
10.05(c), 10.05(d) or 10.05(e) of the Indenture, the Securities may be surrendered for conversion
in integral multiples of $1,000 principal amount into cash, or at the Company’s option, cash and
shares of Common Stock beginning on the date the Company mails the notice to the Holders as
provided in Section 10.10 of the Indenture (or, if earlier, the date the Company is required under
the Indenture to mail such notice) and at any time thereafter until the close of business on the
Business Day immediately preceding the Ex Date (as defined in Section 10.05(g) of the Indenture) of
the applicable transaction or until the Company announces that such transaction will not take
place.

     Conversion Upon Occurrence of Certain Corporate Transactions. Subject to earlier Redemption,
Purchase at Holder’s Option or Repurchase Upon Fundamental Change, if either:

     (i) a Fundamental Change or a Make-Whole Fundamental Change occurs; or

     (ii) the Company is a party to a consolidation, merger or binding share exchange, sale of all
or substantially all of the Company’s properties and assets or other similar transaction, in each
case, pursuant to which the Common Stock would be converted into or exchanged for, or would
constitute solely the right to receive, cash, securities or other property,

A-7

 

     then, in each case, the Securities may be surrendered for conversion into cash and, if
applicable, shares of Common Stock at any time during the period that begins on, and includes, the
date that is thirty (30) calendar days prior to the date originally announced by the
Company as the anticipated effective date of such Fundamental Change, consolidation, merger or
binding share exchange (which anticipated effective date the Company shall disclose, in good faith,
in the written notice, public announcement and publication referred to in Section 10.01(c) of the
Indenture) and ends on, and includes, the date that is thirty (30) calendar days after the actual
effective date of such Fundamental Change, consolidation, merger or binding share exchange;
provided, however, that if such transaction is a Make-Whole Fundamental Change, then the Securities
may also be surrendered for conversion into cash, or, at the Company’s option, cash and shares of
Common Stock at any time during the Make-Whole Conversion Period applicable to such Make-Whole
Fundamental Change; and provided, further, that if such transaction is a Fundamental Change, then
the Securities may also be surrendered for conversion into cash or, at the Company’s option, cash
and shares of Common Stock at any time until, and including, the Fundamental Change Repurchase Date
applicable to such Fundamental Change.

     Conversion on or after October 1, 2024 and at any time from September 1, 2011 to October 1,
2011. Subject to earlier Redemption, Purchase at Holder’s Option or Repurchase Upon Fundamental
Change, the Securities may be surrendered for conversion into cash and, if applicable, shares of
Common Stock at any time on or after October 1, 2024 and prior to the Maturity Date or the earlier
Redemption by the Company or Purchase at Holder’s Option, and at any time from, and including,
September 1, 2011 to, and including, October 1, 2011.

     To convert a Security, a Holder must (1) complete and sign the Conversion Notice, with
appropriate signature guarantee, on the back of the Security, (2) surrender the Security to a
Conversion Agent, (3) furnish appropriate endorsements and transfer documents if required by the
Registrar or Conversion Agent, (4) pay the amount of interest, if any, the Holder must pay in
accordance with the Indenture and as described below and (5) pay any tax or duty if required
pursuant to the Indenture. A Holder may convert a portion of a Security if the portion is $1,000
principal amount or an integral multiple of $1,000 principal amount.

     Upon conversion of a Security, the Holder thereof shall be entitled to receive the cash or, at
the Company’s option cash and shares of Common Stock, payable upon conversion in accordance with
Article X of the Indenture.

     The initial Conversion Rate is                  shares of Common Stock per $1,000 principal amount of
Securities (which results in an effective initial Conversion Price of approximately $      per
share) subject to adjustment in the event of certain circumstances as specified in the Indenture.
The Company will deliver cash in lieu of any fractional share. On conversion, no payment or
adjustment for any unpaid and accrued interest or Contingent Interest on the Securities will be
made. If a Holder surrenders a Security for conversion after the close of business on the record
date for the payment of an installment of interest on or before the related interest payment date,
such Security, when surrendered for conversion, must be accompanied by payment in cash of an amount
equal to the interest thereon which the registered Holder at the close of business on such record
date is to receive (other than overdue interest, if any, that has accrued on such Security), unless
such Security has been called for Redemption as described in the Indenture.

A-8

 

     The Conversion Rate applicable to each Security that is surrendered for conversion, in
accordance with the Securities and Article X of the Indenture, at any time during
the Make-Whole Conversion Period with respect to a Make-Whole Fundamental Change shall be
increased to an amount equal to the Conversion Rate that would, but for Section 10.14 of the
Indenture, otherwise apply to such Security pursuant to Article X of the Indenture, plus an amount
equal to the Make-Whole Applicable Increase; provided, however, that such increase to the
Conversion Rate shall not apply if either (i) such Make-Whole Fundamental Change constitutes a
Public Acquirer Fundamental with respect to which the Company shall have duly made, and given full
effect to, an election, pursuant to and in accordance with Section 10.14(e) of the Indenture, to
make an Acquirer Stock Conversion Right Adjustment; or (ii) such Make-Whole Fundamental Change is
announced by the Company but shall not be consummated.

     11. Denominations, Transfer, Exchange. The Securities are in registered form, without
coupons, in denominations of $1,000 principal amount and integral multiples of $1,000 principal
amount. The transfer of Securities may be registered and Securities may be exchanged as provided
in the Indenture. The Trustee may require a Holder, among other things, to furnish appropriate
endorsements and transfer documents. No service charge shall be made for any such registration of
transfer or exchange, but the Company and the Trustee may require payment of a sum sufficient to
cover any tax or similar governmental charge that may be imposed in connection with certain
transfers or exchanges. The Company or the Trustee, as the case may be, shall not be required to
register the transfer of or exchange any Security (i) during a period beginning at the opening of
business twenty (20) calendar days before the mailing of a notice of redemption of the Securities
selected for Redemption under Section 3.04 of the Indenture and ending at the close of business on
the day of such mailing or (ii) for a period of twenty (20) calendar days before selecting,
pursuant to Section 3.03 of the Indenture, Securities to be redeemed or (iii) that has been
selected for Redemption or for which a Purchase Notice has been delivered pursuant to Section 3.08
or 3.09, and not withdrawn, in accordance with the Indenture, except, in the case of a partial
redemption, purchase or repurchase, that portion of Securities not being redeemed or repurchased.

     12. Persons Deemed Owners. The registered Holder of a Security may be treated as the owner of
such Security for all purposes.

     13. Merger or Consolidation. Except as provided in the Indenture, the Company shall not
consolidate with, or merge with or into, or sell, transfer, lease, convey or otherwise dispose of
all or substantially all of the property or assets of the Company to, another person, whether in a
single transaction or series of related transactions, unless (i) such other person is a corporation
organized and existing under the laws of the United States of America, any State thereof or the
District of Columbia; (ii) such person assumes by supplemental indenture all the obligations of the
Company under the Securities and the Indenture; and (iii) immediately after giving effect to the
transaction, no Default or Event of Default shall exist.

     14. Amendments, Supplements and Waivers. Subject to certain exceptions, the Indenture or the
Securities may be amended or supplemented with the consent of the Holders of at least a majority in
aggregate principal amount of the outstanding Securities, and certain existing Defaults or Events
of Default may be waived with the consent of the Holders of a majority in aggregate principal
amount of the Securities then outstanding. In accordance with

A-9

 

the terms of the Indenture, the
Company, with the consent of the Trustee, may amend or supplement this Indenture or the Securities
without notice to or the consent of any
Securityholder: (i) to comply with Section 10.11 of the Indenture and, in accordance with
Section 10.14(e) of the Indenture, to give effect to an election, pursuant to such Section
10.14(e), by the Company to make an Acquirer Stock Conversion Right Adjustment with respect to a
Public Acquirer Fundamental Change; (ii) to make adjustments in accordance with the Indenture to
the right to convert the Securities upon certain reclassifications or changes in the Common Stock
and certain consolidation mergers and binding share exchanges upon the sale, transfer, lease,
conveyance or other deposition of all or substantially all the Company’s property or assets; (iii)
to secure the obligations of the Company in respect of the Securities; (iv) to add to the covenants
of the Company described in the Indenture for the benefit of Securityholders or to surrender any
right or power conferred upon the Company; (v) to make provisions with respect to adjustments to
the Conversion Rate as required by the Indenture or to increase the Conversion Rate in accordance
with the Indenture; (vi) to evidence the assumption of the Company’s Obligations under the
Indenture or the Securities, as the case may be, by a successor upon the Company’s consolidation or
merger or the sale, transfer, lease, conveyance or other disposition of all or substantially all of
the Company’s property or assets in accordance with the Indenture. In addition, the Company and
the Trustee may enter into a supplemental indenture without the consent of Holders of the
Securities to cure any ambiguity, defect, omission or inconsistency in the Indenture in a manner
that does not, individually or in the aggregate with all other modifications made or to be made to
the Indenture, adversely affect the rights of any Holder in any material respect; (vii) to comply
with the rules or regulations of any securities exchange or automated quotation system on which any
of the Securities may be listed or traded; or (viii) to add to, change or eliminate any of the
provisions of this Indenture as shall be necessary or desirable in accordance with any amendments
to the TIA, provided that such action does not adversely affect the rights or interests of any
Holder of Securities.

     15. Defaults and Remedies.

     If an Event of Default (excluding an Event of Default specified in Section 6.01(viii) or (ix)
of the Indenture with respect to the Company (but including an Event of Default specified in
Section 6.01(viii) or (ix) of the Indenture solely with respect to a Significant Subsidiary of the
Company or any group of Subsidiaries that in the aggregate would constitute a Significant
Subsidiary of the Company)) occurs and is continuing, the Trustee by notice to the Company or the
Holders of at least twenty five percent (25%) in principal amount of the Securities then
outstanding by notice to the Company and the Trustee may declare the Securities to be due and
payable. Upon such declaration, the principal of, and any premium and accrued and unpaid interest
(including, without limitation, any Contingent Interest) on, all Securities shall be due and
payable immediately. If an Event of Default specified in Section 6.01(viii) or (ix) of the
Indenture with respect to the Company (excluding, for purposes of this sentence, an Event of
Default specified in Section 6.01(viii) or (ix) of the Indenture solely with respect to a
Significant Subsidiary of the Company or any group of Subsidiaries that in the aggregate would
constitute a Significant Subsidiary of the Company) occurs, the principal of, and premium and
accrued and unpaid interest (including, without limitation, any Contingent Interest) on, all the
Securities shall ipso facto become and be immediately due and payable without any declaration or
other act on the part of the Trustee or any Holder. The Holders of a majority in aggregate
principal amount of the Securities then outstanding by written notice to the Trustee may rescind or
annul an

A-10

 

acceleration and its consequences if (A) the rescission would not conflict with any order
or decree, (B) all existing Events of Default, except the nonpayment of principal, premium or
interest (including, without limitation, Contingent Interest) that has become due solely
because of the acceleration, have been cured or waived and (C) all amounts due to the Trustee under
Section 7.07 of the Indenture have been paid.

     Holders may not enforce the Indenture or the Securities except as provided in the Indenture.
The Holders of a majority in aggregate principal amount of the Securities then outstanding may
direct the time, method and place of conducting any proceeding for any remedy available to the
Trustee or exercising any trust or power conferred on it. However, the Trustee may refuse to
follow any direction that conflicts with law or the Indenture, is unduly prejudicial to the rights
of other Holders or would involve the Trustee in personal liability unless the Trustee is offered
indemnity reasonably satisfactory to it; provided, that the Trustee may take any other action
deemed proper by the Trustee which is not inconsistent with such direction.

     If a Default or Event of Default occurs and is continuing as to which the Trustee has received
written notice pursuant to the provisions of the Indenture, or as to which a Responsible Officer of
the Trustee shall have actual knowledge, the Trustee shall mail to each Holder a notice of the
Default or Event of Default within thirty (30) days after it occurs unless such Default or Event of
Default has been cured or waived. Except in the case of a Default or Event of Default in payment
of any amounts due with respect to any Security, the Trustee may withhold the notice if, and so
long as it in good faith determines that, withholding the notice is in the best interests of
Holders. The Company must deliver to the Trustee an annual compliance certificate.

     16. Tax Treatment. The Company agrees, and by acceptance of beneficial ownership interest in
the Securities each Holder of the Securities will be deemed to have agreed, for U.S. federal income
tax purposes (A) to treat the Securities as indebtedness that is subject to Treas. Reg. Sec.
1.1275-4 (the “Contingent Payment Regulations”) and, for purposes of the Contingent Payment
Regulations, to treat the cash and the fair market value of any stock beneficially received by a
Holder upon any conversion of the Securities as a contingent payment and (B) to be bound by the
Company’s determination of the “comparable yield” and “projected payment schedule,” within the
meaning of the Contingent Payment Regulations, with respect to the Securities. A Holder may obtain
the issue price, amount of original issue discount, issue date, yield to maturity, comparable yield
and projected payment schedule for the Securities by submitting a written request for such
information to the Company at the following address: Diodes Incorporated, Attention: Chief
Financial Officer, 3050 East Hillcrest Drive, Westlake Village, California 91362.

     17. [Intentionally omitted.]

     18. Trustee’s and Dealings with the Company. The Trustee and each banking institution, if
any, serving as successor Trustee thereunder, in its individual or any other capacity, may make
loans to, accept deposits from, and perform services for, the Company or its Affiliates, and may
otherwise deal with the Company or its Affiliates, as if it were not Trustee.

A-11

 

     19. No Recourse Against Others. No past, present or future director, officer, employee or
shareholder, as such, of the Company shall have any liability for any obligations of the Company
under the Securities or the Indenture or for any claim based on, in respect of, or by
reason of, such obligations or their creation. Each Holder, by accepting a Security, waives
and releases all such liability. The waiver and release are part of the consideration for the
issue of the Securities.

     20. Authentication. This Security shall not be valid until authenticated by the manual
signature of the Trustee or an authenticating agent in accordance with the Indenture.

     21. Governing Law. The Internal laws of the State of New York shall govern and be used to
construe this Security, including without limitation, Sections 5-1401 and 5-1402 of the New York
General Obligations Law and New York Civil Practice Laws and Rules 327(b).

     22. Abbreviations. Customary abbreviations may be used in the name of a Holder or an
assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entirety), 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).

     THE COMPANY WILL FURNISH TO ANY HOLDER UPON WRITTEN REQUEST AND WITHOUT CHARGE A COPY OF THE
INDENTURE. REQUESTS MAY BE MADE TO:

Diodes Incorporated

3050 East Hillcrest Drive

Westlake Village, California 91362

Attention: Chief Financial Officer

A-12

 

[FORM OF ASSIGNMENT]

I or we assign to

PLEASE INSERT SOCIAL SECURITY OR
OTHER IDENTIFYING NUMBER

 

 

 

 

(please print or type name and address)

 

 

 

 

the within Security and all rights thereunder, and hereby irrevocably constitute and appoint

 

 

 

Attorney to transfer the Security on the books of the Company with full power of substitution in
the premises.

Dated:

NOTICE: The signature on this assignment must correspond with the name as it appears
upon the face of the within Security in every particular without alteration or
enlargement or any change whatsoever and be guaranteed by a guarantor institution
participating in the Securities Transfer Agents Medallion Program or in such other
guarantee program acceptable to the Registrar.

Signature Guarantee:

A-13

 

CONVERSION NOTICE

To convert this Security in accordance with the Indenture, check the box: o

To convert only part of this Security, state the principal amount to be converted (must be in
multiples of $1,000):

$ 

If you want the stock certificate representing the shares of Common Stock, if any, issuable upon
conversion made out in another person’s name, fill in the form below:

 

 

(Insert other person’s soc. sec. or tax I.D. no.)

 

 

 

 

 

 

 

 

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

	 	 	 
	Date:

	 	Signature(s):
	 
	 	 
	 

	 	(Sign exactly as name appears on the other side of this Section)
	 
	 	 
	Signatures guaranteed by:
	 	 
	 
	 	 
	 

	 	(All signatures must be guaranteed by a guarantor institution
participating in the Securities Transfer Agent Medallion
Program or in such other guarantee program acceptable to the
Trustee).

A-14

 

PURCHASE NOTICE

Certificate No. of Security:

     If you want to elect to have this Security purchased by the Company pursuant to Section 3.08
of the Indenture, check the box: o

     If you want to elect to have this Security purchased by the Company pursuant to Section 3.09
of the Indenture, check the box: o

     If you want to elect to have only part of this Security purchased by the Company pursuant to
Section 3.08 or Section 3.09 of the Indenture, as applicable, state the principal amount to be so
purchased by the Company:

$
 

(in an integral multiple of $1,000)

	 	 	 
	Date:

	 	Signature(s):
	 
	 	 
	 

	 	(Sign exactly as name(s) appear(s) on the other side of this
Section)
	 
	 	 
	Signatures guaranteed by:
	 	 
	 
	 	 
	 

	 	(All signatures must be guaranteed by a
guarantor institution participating in
the Securities Transfer Agent Medallion
Program or in such other guarantee
program acceptable to the Trustee).

A-15

 

EXHIBIT B-1

GLOBAL SECURITY LEGEND

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (THE “DEPOSITARY”, WHICH TERM INCLUDES ANY SUCCESSOR
DEPOSITARY FOR THE CERTIFICATES) TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE
OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT HEREIN IS MADE
TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITARY), 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.

B-1-1

 

EXHIBIT B-2

TAX LEGEND

     THIS NOTE HAS BEEN ISSUED WITH ORIGINAL ISSUE DISCOUNT, FOR PURPOSES OF SECTIONS 1272, 1273, AND
1275 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED. UPON REQUEST OF THE HOLDER OF THIS NOTE,
THE COMPANY WILL PROMPTLY MAKE AVAILABLE TO THE HOLDER OF THIS NOTE, (I) THE ISSUE PRICE OF THE
NOTE, (II) THE AMOUNT OF ORIGINAL ISSUE DISCOUNT IN RESPECT THEREOF, (III) THE ISSUE DATE OF THE
NOTE, (IV) THE COMPARABLE YIELD OF THE NOTE, AND (V) THE PROJECTED PAYMENT SCHEDULE OF THE NOTE, IN
EACH CASE AS DETERMINED UNDER THE ORIGINAL ISSUE DISCOUNT RULES OF THE U.S. INTERNAL REVENUE CODE.
PLEASE CONTACT DIODES INCORPORATED, ATTN: CHIEF FINANCIAL OFFICER, 3050 EAST HILLCREST DRIVE,
WESTLAKE VILLAGE, CALIFORNIA 91362

C-1exv10w1

 

Exhibit 10.1

AMB 2005

NONQUALIFIED DEFERRED COMPENSATION PLAN

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 1. DEFINITIONS	 	 	1	 
	 
	 	 	 	 	 	 	 	 
	 
	 	1.1	 	“Account Balance”	 	 	1	 
	 
	 	1.2	 	“Accounts”	 	 	1	 
	 
	 	1.3	 	“Administrator”	 	 	2	 
	 
	 	1.4	 	“Annual Bonus”	 	 	2	 
	 
	 	1.5	 	“Annual Company Contribution Amount”	 	 	2	 
	 
	 	1.6	 	“Annual Company Matching Amount”	 	 	2	 
	 
	 	1.7	 	“Annual Deferral Amount”	 	 	2	 
	 
	 	1.8	 	“Annual Installment Method”	 	 	2	 
	 
	 	1.9	 	“Base Annual Salary”	 	 	2	 
	 
	 	1.10	 	“Beneficiary”	 	 	2	 
	 
	 	1.11	 	“Beneficiary Designation Form”	 	 	2	 
	 
	 	1.12	 	“Board”	 	 	3	 
	 
	 	1.13	 	“Change in Control”	 	 	3	 
	 
	 	1.14	 	“Change in Control Benefits”	 	 	3	 
	 
	 	1.15	 	“Claimant”	 	 	3	 
	 
	 	1.16	 	“Code”	 	 	3	 
	 
	 	1.17	 	“Committee”	 	 	3	 
	 
	 	1.18	 	“Company”	 	 	4	 
	 
	 	1.19	 	“Company Contribution Account”	 	 	4	 
	 
	 	1.20	 	“Company Matching Account”	 	 	4	 
	 
	 	1.21	 	“Deduction Limitation”	 	 	4	 
	 
	 	1.22	 	“Deferral Account”	 	 	4	 
	 
	 	1.23	 	“Director”	 	 	4	 
	 
	 	1.24	 	“Directors Fees”	 	 	4	 
	 
	 	1.25	 	“Disability”	 	 	4	 
	 
	 	1.27	 	“Disability Benefits”	 	 	5	 
	 
	 	1.28	 	“Election Form”	 	 	5	 
	 
	 	1.29	 	“Employee”	 	 	5	 
	 
	 	1.30	 	“Employer(s)”	 	 	5	 
	 
	 	1.31	 	“ERISA”	 	 	5	 
	 
	 	1.32	 	“Equity Plan”	 	 	5	 
	 
	 	1.33	 	“Exchange Act”	 	 	5	 
	 
	 	1.34	 	“Fair Market Value”	 	 	5	 
	 
	 	1.35	 	“First Plan Year”	 	 	5	 
	 
	 	1.36	 	“Fixed Date Payout”	 	 	5	 
	 
	 	1.37	 	“Fixed Date Payout Account Balance”	 	 	5	 
	 
	 	1.38	 	“401(k) Plan”	 	 	5	 
	 
	 	1.39	 	“Measurement Fund”	 	 	5	 
	 
	 	1.40	 	“Non-Employee Director”	 	 	5	 
	 
	 	1.41	 	“Officer”	 	 	6	 
	 
	 	1.42	 	“Participant”	 	 	6	 
	 
	 	1.43	 	“Partnership”	 	 	6	 
	 
	 	1.44	 	“Plan”	 	 	6	 
	 
	 	1.45	 	“Plan Year”	 	 	6	 
	 
	 	1.46	 	“Pre-Retirement Survivor Benefits”	 	 	6	 
	 
	 	1.47	 	“Quarterly Installment Method”	 	 	6	 
	 
	 	1.48	 	“Restricted Stock”	 	 	6	 
	 
	 	1.49	 	“Restricted Stock Account”	 	 	6	 
	 
	 	1.50	 	“Restricted Stock Amount”	 	 	6	 

-i-

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	 	 	 	 	 	 	 
	 
	 	1.51	 	“Retirement,”  “Retire(s)” or “Retired”	 	 	6	 
	 
	 	1.52	 	“Retirement Benefits”	 	 	7	 
	 
	 	1.53	 	“Rule 16b-3”	 	 	7	 
	 
	 	1.54	 	“Securities Act”	 	 	7	 
	 
	 	1.55	 	“Separation from Service”	 	 	7	 
	 
	 	1.56	 	“Stock”	 	 	8	 
	 
	 	1.57	 	“Stock Unit”	 	 	8	 
	 
	 	1.58	 	“Termination Benefits”	 	 	8	 
	 
	 	1.59	 	“Termination of Employment”	 	 	8	 
	 
	 	1.60	 	“Trust”	 	 	8	 
	 
	 	1.61	 	“Unforeseeable Financial Emergency”	 	 	8	 
	 
	 	1.62	 	“Vesting Date”	 	 	8	 
	 
	 	1.63	 	“Years of Service”	 	 	8	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 2. SELECTION, ENROLLMENT, ELIGIBILITY	 	 	9	 
	 
	 	 	 	 	 	 	 	 
	 
	 	2.1	 	Selection by Administrator	 	 	9	 
	 
	 	2.2	 	Enrollment Requirements	 	 	9	 
	 
	 	2.3	 	Eligibility Requirements; Commencement of Participation	 	 	9	 
	 
	 	2.4	 	Termination of Participation and/or Deferrals	 	 	9	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 3. DEFERRAL COMMITMENTS/COMPANY CONTRIBUTIONS/CREDITING/TAXES	 	 	9	 
	 
	 	 	 	 	 	 	 	 
	 
	 	3.1	 	Election to Defer; Effect of Election Form	 	 	9	 
	 
	 	3.2	 	Redeferral	 	 	10	 
	 
	 	3.3	 	Special Elections During Transition Period	 	 	10	 
	 
	 	3.4	 	Annual Minimum	 	 	11	 
	 
	 	3.5	 	Maximum Deferral	 	 	11	 
	 
	 	3.6	 	Accounts; Crediting of Deferrals	 	 	12	 
	 
	 	3.7	 	Vesting	 	 	13	 
	 
	 	3.8	 	Earnings Credits or Losses	 	 	13	 
	 
	 	3.9	 	Distributions	 	 	14	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 4. FIXED DATE PAYOUTS	 	 	14	 
	 
	 	 	 	 	 	 	 	 
	 
	 	4.1	 	Fixed Date Payout	 	 	14	 
	 
	 	4.2	 	Other Benefits Take Precedence Over Fixed Date	 	 	14	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 5. DISTRIBUTIONS	 	 	15	 
	 
	 	 	 	 	 	 	 	 
	 
	 	5.1	 	Retirement Benefit	 	 	15	 
	 
	 	5.2	 	Pre-Retirement Survivor Benefit	 	 	15	 
	 
	 	5.3	 	Termination Benefit	 	 	15	 
	 
	 	5.4	 	Change in Control Benefit	 	 	16	 
	 
	 	5.5	 	Disability Benefit	 	 	16	 
	 
	 	5.6	 	Stock Distributions	 	 	16	 
	 
	 	5.7	 	Delayed Distributions for Employee Participants	 	 	16	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 6. UNFORESEEABLE FINANCIAL EMERGENCIES	 	 	17	 
	 
	 	 	 	 	 	 	 	 
	 
	 	6.1	 	Withdrawal Payout/Suspensions for Unforeseeable Financial Emergencies	 	 	17	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 7. BENEFICIARY DESIGNATION	 	 	17	 
	 
	 	 	 	 	 	 	 	 
	 
	 	7.1	 	Beneficiary	 	 	17	 
	 
	 	7.2	 	Beneficiary Designation; Change; Spousal Consent	 	 	17	 
	 
	 	7.3	 	Acknowledgment	 	 	17	 
	 
	 	7.4	 	No Beneficiary Designation	 	 	17	 
	 
	 	7.5	 	Doubt as to Beneficiary	 	 	17	 

-ii-

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	 	 	 	 	 	 	 
	 
	 	7.6	 	Discharge of Obligations	 	 	17	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 8. LEAVE OF ABSENCE	 	 	18	 
	 
	 	 	 	 	 	 	 	 
	 
	 	8.1	 	Paid Leave of Absence	 	 	18	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 9. TERMINATION, AMENDMENT OR MODIFICATION	 	 	18	 
	 
	 	 	 	 	 	 	 	 
	 
	 	9.1	 	Termination With Respect to Account Balances	 	 	18	 
	 
	 	9.2	 	Amendment	 	 	18	 
	 
	 	9.3	 	Effect of Payment	 	 	18	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 10. ADMINISTRATION	 	 	18	 
	 
	 	 	 	 	 	 	 	 
	 
	 	10.1	 	Administrator Duties	 	 	18	 
	 
	 	10.2	 	Binding Effect of Decisions	 	 	19	 
	 
	 	10.3	 	Committee	 	 	19	 
	 
	 	10.4	 	Indemnification	 	 	19	 
	 
	 	10.5	 	Employer Information	 	 	19	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 11. CLAIMS PROCEDURES	 	 	19	 
	 
	 	 	 	 	 	 	 	 
	 
	 	11.1	 	Presentation of Claim	 	 	19	 
	 
	 	11.2	 	Notification of Decision	 	 	19	 
	 
	 	11.3	 	Review of a Denied Claim	 	 	20	 
	 
	 	11.4	 	Decision on Review	 	 	20	 
	 
	 	11.5	 	Designation	 	 	21	 
	 
	 	11.6	 	Arbitration	 	 	21	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 12. TRUST	 	 	21	 
	 
	 	 	 	 	 	 	 	 
	 
	 	12.1	 	Establishment of the Trust	 	 	21	 
	 
	 	12.2	 	Interrelationship of the Plan and the Trust	 	 	21	 
	 
	 	12.3	 	Investment of Trust Assets	 	 	21	 
	 
	 	12.4	 	Distributions From the Trust	 	 	21	 
	 
	 	12.5	 	Limitations on Stock Distributed from the Trust.	 	 	21	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 13. PROVISIONS RELATING TO SECURITIES LAWS	 	 	22	 
	 
	 	 	 	 	 	 	 	 
	 
	 	13.1	 	Designation of Participants	 	 	22	 
	 
	 	13.2	 	Action by Committee	 	 	22	 
	 
	 	13.3	 	Compliance with Section 16	 	 	22	 
	 
	 	13.4	 	Committee Approval	 	 	22	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 14. CERTAIN CORPORATE EVENTS	 	 	22	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 15. MISCELLANEOUS	 	 	23	 
	 
	 	 	 	 	 	 	 	 
	 
	 	15.1	 	Status of Plan	 	 	23	 
	 
	 	15.2	 	Unsecured General Creditor	 	 	23	 
	 
	 	15.3	 	Employer’s Liability	 	 	23	 
	 
	 	15.4	 	Nonassignability	 	 	23	 
	 
	 	15.5	 	Sources of Stock	 	 	23	 
	 
	 	15.6	 	Tax Withholding	 	 	24	 
	 
	 	15.7	 	Coordination with Other Benefits	 	 	24	 
	 
	 	15.8	 	Compliance	 	 	24	 
	 
	 	15.9	 	Not a Contract of Employment	 	 	24	 
	 
	 	15.10	 	Furnishing Information	 	 	25	 
	 
	 	15.11	 	Governing Law	 	 	25	 
	 
	 	15.12	 	Notice	 	 	25	 
	 
	 	15.13	 	Successors	 	 	25	 
	 
	 	15.14	 	Spouse’s Interest	 	 	25	 

-iii-

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 
	 	 	 	 	 	 	 	 
	 
	 	15.15	 	Validity	 	 	25	 
	 
	 	15.16	 	Incompetent	 	 	25	 
	 
	 	15.17	 	Court Order	 	 	25	 
	 
	 	15.18	 	Automatic Rescission, Trust Distributions and Plan Interpretation	 	 	26	 
	 
	 	15.19	 	Insurance	 	 	26	 
	 
	 	15.20	 	Status of Company as a REIT	 	 	26	 

-iv-

 

AMB 2005

NONQUALIFIED DEFERRED COMPENSATION PLAN

PURPOSE

     AMB Property Corporation, a Maryland corporation (the “Company”) established the AMB
Nonqualified Deferred Compensation Plan effective September 1, 1999, as amended and restated
September 1, 2002 (the “Grandfathered Plan”) under which all deferred amounts were vested on or
before December 31, 2004 and not subject to Section 409A of the Internal Revenue Code of 1986, as
amended (the “Code”). In order to preserve the exemption from Section 409A of the Code for the
Grandfathered Plan, the vested amounts deferred thereunder and the earnings on such vested amounts
so deferred, deferrals for amounts vested on or after January 1, 2005 shall no longer be allowed
under the Grandfathered Plan.

     The Company hereby adopts the AMB 2005 Nonqualified Deferred Compensation Plan (the “Plan”)
for the benefit of a select group of management and highly compensated Employees and Directors who
contribute materially to the continued growth, development and future business success of AMB
Property, L.P., a Delaware limited partnership (the “Partnership”), and the Company and its
subsidiaries, if any, that sponsor this Plan. This Plan is intended to comply with the provisions
of and the Department of Treasury proposed and final rules, regulations and other guidance
promulgated under Section 409A of the Code and not result in a penalty tax thereunder. Any
deferred amounts under the Grandfathered Plan which were not earned and vested as of December 31,
2004 shall automatically transfer to this Plan. This Plan shall be unfunded for tax purposes and
for purposes of Title I of ERISA.

     This Plan shall consist of two plans, one for the benefit of a select group of management and
highly compensated employees of the Employers as described in Sections 201(2), 301(a)(3) and
401(a)(1) of ERISA, and one for the benefit of Non-Employee members of the boards of directors of
any Employer. To the extent required by law, the terms of this Plan applicable to Directors shall
also constitute a separate written plan document with its terms set forth in the applicable
portions of this Plan.

ARTICLE 1.

DEFINITIONS

     As used within this document, the following words and phrases have the meanings described in
this Article 1 unless a different meaning is required by the context. Some of the words and
phrases used in the Plan are not defined in this Article 1, but for convenience, are defined as
they are introduced into the text. Words in the masculine gender shall be deemed to include the
feminine gender. Any headings used are included for ease of reference only and are not to be
construed so as to alter any of the terms of the Plan.

     1.1 “Account Balance” shall mean, with respect to a Participant, a credit on the
records of the Employer equal to the sum of (i) the Deferral Account balance, (ii) the vested
Company Contribution Account balance, (iii) the vested Company Matching Account balance, and (iv)
the Restricted Stock Account balance. The Account Balance, and each other specified account
balance, shall be a bookkeeping entry only and shall be utilized solely as a device for the
measurement and determination of the amounts to be paid to a Participant, or his or her designated
Beneficiary, pursuant to this Plan.

     1.2 “Accounts” of a Participant shall mean, as the context indicates, either or all of
his or her Deferral Account, Company Contribution Account, Company Matching Account and Restricted
Stock Account.

-1-

 

     1.3 “Administrator” shall mean the Committee appointed pursuant to Article 10 to
administer the Plan, or such other person or persons to whom the Committee has delegated its duties
pursuant to Article 10.

     1.4 “Annual Bonus” shall mean any compensation, in addition to Base Annual Salary
relating to services performed during any calendar year, whether or not paid in such calendar year
or included on the Federal Income Tax Form W-2 for such calendar year, payable to a Participant as
an Employee under any Employer’s annual bonus and cash incentive plans, excluding stock options and
restricted stock.

     1.5 “Annual Company Contribution Amount” shall mean, for any one Plan Year, the amount
determined in accordance with Section 3.6(b).

     1.6 “Annual Company Matching Amount” for any one Plan Year shall be the amount
determined in accordance with Section 3.6(c).

     1.7 “Annual Deferral Amount” shall mean that portion of a Participant’s Base Annual
Salary, Annual Bonus and Directors Fees that a Participant elects to have, and is deferred, in
accordance with Article 3, for any one Plan Year. In the event of a Participant’s Retirement,
Disability, death or a Termination of Employment prior to the end of a Plan Year, such year’s
Annual Deferral Amount shall be the actual amount withheld prior to such event.

     1.8 “Annual Installment Method” shall be an annual installment payment over the number
of years selected by the Participant in accordance with this Plan, calculated as follows: The
Account Balance of the Participant (or the Fixed Date Payout Account Balance, in the event of a
Fixed Date Payout) shall be calculated as of the close of business three business days prior to the
last business day of the fourth quarter preceding the distribution. The annual installment shall be
calculated by multiplying this balance by a fraction, the numerator of which is one, and the
denominator of which is the remaining number of yearly payments due the Participant. By way of
example, if the Participant elects a ten year Annual Installment Method, the first payment shall be
1/10 of the Account Balance (or the Fixed Date Payout Account Balance, in the event of a Fixed Date
Payout), calculated as described in this definition. The following year, the payment shall be 1/9
of the Account Balance (or the Fixed Date Payout Account Balance, in the event of a Fixed Date
Payout), calculated as described in this definition.

     1.9 “Base Annual Salary” shall mean the annual cash compensation relating to services
performed during any calendar year, whether or not paid in such calendar year or included on the
Federal Income Tax Form W-2 for such calendar year, excluding bonuses, commissions, overtime,
fringe benefits, stock options, relocation expenses, incentive payments, non-monetary awards,
directors fees and other fees, automobile and other allowances paid to a Participant for employment
services rendered (whether or not such allowances are included in the Employee’s gross income).
Base Annual Salary shall be calculated before reduction for compensation voluntarily deferred or
contributed by the Participant pursuant to all qualified or non-qualified plans of any Employer and
shall be calculated to include amounts not otherwise included in the Participant’s gross income
under Code Sections 125, 132(f), 402(e)(3), 402(h), or 403(b) pursuant to plans established by any
Employer; provided, however, that all such amounts will be included in compensation only to the extent that, had there been no such plan, the amount would have been
payable in cash to the Employee.

     1.10 “Beneficiary” shall mean one or more persons, trusts, estates or other entities,
designated in accordance with Article 7, that are entitled to receive benefits under this Plan upon
the death of a Participant.

     1.11 “Beneficiary Designation Form” shall mean the form established from time to time
by the Administrator that a Participant completes, signs and returns to the Administrator to
designate one or more Beneficiaries.

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     1.12 “Board” shall mean the board of directors of the Company.

     1.13 “Change in Control” shall mean any of the following events:

     (a) the complete liquidation of the Company or the sale or disposition by the
Company of all or substantially all of the Company’s assets, or the disposition by the
Company of more than fifty percent (50%) of its interest in the Partnership;

     (b) any Person (as defined below) is or becomes the Beneficial Owner (as
defined below), directly or indirectly, of securities of the Company representing fifty
percent (50%) or more of the combined voting power of the Company’s then outstanding
securities. For purposes of this definition, (i) the term “Person” is used as such term is
used in Sections 13(d) and 14(d) of the Exchange Act; provided, however, that the term shall
not include the Company, any trustee or other fiduciary holding securities under an employee
benefit plan of the Company, and any corporation owned, directly or indirectly, by the
shareholders of the Company, in substantially the same proportions as their ownership of
stock of the Company, and (ii) the term “Beneficial Owner” shall have the meaning given to
such term in Rule 13d-3 under the Exchange Act;

     (c) during any period of twelve (12) consecutive months, individuals who at
the beginning of such period constitute the Board, and any new director (other than a
director designated by a person who has entered into an agreement with the Company to effect
a transaction described in clauses (a), (b) or (d)) whose election by the Board or
nomination for election by the Company’s shareholders was approved by a vote of at least
two-thirds (2/3) of the directors then still in office who either were directors at the
beginning of the period or whose election or nomination for election was previously so
approved, cease for any reason to constitute at least a majority thereof; or

     (d) the consummation of a merger or consolidation of the Company with any
other corporation (or other entity); provided, that, a Change in Control shall not be deemed
to occur (i) as the result of a merger or consolidation which would result in the voting
securities of the Company outstanding immediately prior thereto continuing to represent
(either by remaining outstanding or by being converted into voting securities of the
surviving entity) more than fifty percent (50%) of the combined voting power of the voting
securities of the Company or such surviving entity outstanding immediately after such merger
or consolidation or (ii) where more than fifty percent (50%) of the directors of the Company
or the surviving entity after such merger or consolidation were directors of the Company
immediately before such merger or consolidation.

     Notwithstanding the foregoing, a Change in Control shall be limited to such transactions as
constitute a change in the ownership or effective control of the Company or in the ownership of a
substantial portion of the assets of the Company within the meaning of Section 409A(a)(2)(A)(v) of
the Code and the proposed and final Department of Treasury rules, regulations and other guidance
promulgated thereunder,

     1.14 “Change in Control Benefits” shall mean the benefits set forth in Section 5.4.

     1.15 “Claimant” shall have the meaning set forth in Section 11.1.

     1.16 “Code” shall mean the Internal Revenue Code of 1986, as it may be amended from
time to time.

     1.17 “Committee” shall mean the Compensation Committee of the Board or another
committee or subcommittee of the Board appointed to administer the Plan pursuant to Article 10.

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     1.18 “Company” shall mean AMB Property Corporation, a Maryland corporation, and any
successor to all or substantially all of the Company’s assets or business.

     1.19 “Company Contribution Account” shall mean (i) the sum of all of a Participant’s
Annual Company Contribution Amounts, plus (ii) amounts credited in accordance with all the
applicable crediting provisions of this Plan that relate to the Participant’s Company Contribution
Account, less (iii) all distributions made to the Participant or his or her Beneficiary pursuant to
this Plan that relate to the Participant’s Company Contribution Account.

     1.20 “Company Matching Account” shall mean (i) the sum of all of a Participant’s
Annual Company Matching Amounts, plus (ii) amounts credited in accordance with all the applicable
crediting provisions of this Plan that relate to the Participant’s Company Matching Account, less
(iii) all distributions made to the Participant or his or her Beneficiary pursuant to this Plan
that relate to the Participant’s Company Matching Account.

     1.21 “Deduction Limitation” shall mean the following described limitation on a benefit
that may otherwise be distributable pursuant to the provisions of this Plan. Except as otherwise
provided, this limitation shall be applied to all distributions that are “subject to the Deduction
Limitation” under this Plan. If an Employer determines in good faith prior to a Change in Control
that there is a reasonable likelihood that any compensation paid to a Participant for a taxable
year of the Employer would not be deductible by the Employer solely by reason of the limitation
under Code Section 162(m), then to the extent deemed necessary by the Employer to ensure that the
entire amount of any distribution to the Participant pursuant to this Plan prior to the Change in
Control is deductible, the Employer may defer all or any portion of a distribution under this Plan.
Any amounts deferred pursuant to this limitation shall continue to be credited/debited with
additional amounts in accordance with Section 3.8 below, even if such amount is being paid out in
installments. The amounts so deferred and amounts credited thereon shall be distributed to the
Participant or his or her Beneficiary (in the event of the Participant’s death) at the earliest
possible date, as determined by the Employer in good faith, on which the deductibility of compensation paid or
payable to the Participant for the taxable year of the Employer during which the distribution is
made will not be limited by Section 162(m). Notwithstanding anything to the contrary in this Plan,
the Deduction Limitation shall not apply to any distributions made after a Change in Control.

     1.22 “Deferral Account” shall mean (i) the sum of all of a Participant’s Annual
Deferral Amounts, plus (ii) amounts credited in accordance with all the applicable crediting
provisions of this Plan that relate to the Participant’s Deferral Account, less (iii) all
distributions made to the Participant or his or her Beneficiary pursuant to this Plan that relate
to his or her Deferral Account.

     1.23 “Director” shall mean any member of the board of directors of the Company.

     1.24 “Directors Fees” shall mean the annual fees paid by the Company, including
retainer fees and meetings fees, as compensation for serving on the board of directors.

     1.25 “Disability” shall mean, provided that such definition is consistent with Section
409A of the Code and the proposed and final Department of Treasury rules, regulations and other
guidance promulgated thereunder, with respect to a Participant, such Participant (a) is unable to
engage in any substantial gainful activity by reason of any medically determinable physical or
mental impairment that can be expected to result in death or can be expected to last for a
continuous period of not less than twelve (12) months, or (b) is, by reason of any medically
undeterminable physical or mental impairment that can be expected to result in death or can be
expected to result in death or can be expected to last for a continuous period of not less than
twelve (12) months, receiving income replacement benefits for a period of not less than three (3)
months under an accident or health plan covering employees of such Participant’s Employer, or (c)
is determined to be totally disabled by the Social Security Administration. The existence of a
Disability under clause (a) and (b) shall be determined by the Administrator on the advice of a
physician chosen by the Administrator.

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     1.27 “Disability Benefits” shall mean the benefits set forth in Section 5.5.

     1.28 “Election Form” shall mean the form established from time to time by the
Administrator that a Participant completes, signs and returns to the Administrator to make an
election under the Plan.

     1.29 “Employee” shall mean a person who is an officer and employee of any Employer.

     1.30 “Employer(s)” shall initially mean AMB Property, L.P., but shall also include the
Company and/or any of its subsidiaries (now in existence or hereafter formed or acquired) that have
been selected by the Board to participate in the Plan and have adopted the Plan as a sponsor.

     1.31 “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as it may
be amended from time to time.

     1.32 “Equity Plan” shall mean any stock option or other incentive compensation plan
which is maintained by the Company or AMB Property, L. P. and which provides for grants of
restricted stock.

     1.33 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

     1.34 “Fair Market Value” of a share of Stock as of a given date shall be (a) the
closing price of a share of Stock on the principal exchange on which shares of Stock are then
trading, if any (or as reported on any composite index which includes such principal exchange), on
such date, or if shares were not traded on such date, then on the next following date on which a
trade occurred, or (b) if Stock is not traded on an exchange but is quoted on NASDAQ or a successor
quotation system, the mean between the closing representative bid and asked prices for the Stock on
such date as reported by NASDAQ or such successor quotation system; or (c) if Stock is not publicly
traded on an exchange and not quoted on NASDAQ or a successor quotation system, the Fair Market
Value of a share of Stock as established by the Administrator acting in good faith. In determining
the Fair Market Value of the Stock, the Administrator may rely on the closing price as reported in
the New York Stock Exchange composite transactions published in the Western Edition of the Wall
Street Journal.

     1.35 “First Plan Year” shall mean the period beginning January 1, 2005 and ending
December 31, 2005.

     1.36 “Fixed Date Payout” shall mean the payout set forth in Section 4.1.

     1.37 “Fixed Date Payout Account Balance” shall mean, with respect to a Participant, a
credit on the records of the Employer equal to the sum of (i) the amount deferred by the
Participant pursuant to an Election Form and with respect to which a Fixed Date Payout was elected,
plus (ii) amounts credited or debited in the manner provided in Section 3.8 on such amount. The
Fixed Date Payout Account Balance shall be a bookkeeping entry only and shall be utilized solely as
a device for the measurement and determination of the amounts to be paid to a Participant, or his
or her designated Beneficiary, pursuant to this Plan.

     1.38 “401(k) Plan” shall mean that certain AMB Property, L.P. Savings and Retirement
Plan, effective October 1, 1983, initially adopted by the Company’s predecessor-in-interest and as
subsequently amended.

     1.39 “Measurement Fund” shall mean the investment fund or funds selected by the
Administrator from time to time.

     1.40 “Non-Employee Director” shall mean a Director who is not an Employee of any Employer.

-5-

 

     1.41 “Officer” shall mean a person who is an officer of the Company and an employee of
the Partnership or a U.S. affiliate of the Partnership, as determined by the Administrator in its
sole discretion.

     1.42 “Participant” shall mean (i) an Officer or Director who is subject to United
States income tax or (ii) any Employee designated to participate in the Plan by the Administrator
and who is subject to United States income tax who (A) elects to participate in the Plan, (B) signs
an Election Form and a Beneficiary Designation Form, (C) whose signed Election Form and Beneficiary
Designation Form are accepted by the Administrator, and (D) who commences participation in the
Plan. A spouse or former spouse of a Participant shall not be treated as a Participant in the Plan
or have an account balance under the Plan, even if he or she has an interest in the Participant’s
benefits under the Plan as a result of applicable law or property settlements resulting from legal
separation or divorce.

     1.43 “Partnership” shall mean AMB Property, L.P., a Delaware limited partnership, and
any successor to all or substantially all of the Partnership’s assets or business.

     1.44 “Plan” shall mean the AMB 2005 Nonqualified Deferred Compensation Plan, which
shall be evidenced by this instrument, as amended from time to time.

     1.45 “Plan Year” shall mean a period beginning on January 1 of each calendar year and
continuing through December 31 of such calendar year.

     1.46 “Pre-Retirement Survivor Benefits” shall mean the benefits set forth in Sections
5.2.

     1.47 “Quarterly Installment Method” shall be a quarterly installment payment over the
number of quarters selected by the Participant in accordance with this Plan, calculated as follows:
The Account Balance of the Participant (or the Fixed Date Payout Account Balance, in the event of a
Fixed Date Payout) shall be calculated as of the close of business three business days prior to the
last business day of the quarter preceding the distribution. The quarterly installment shall be
calculated by multiplying this balance by a fraction, the numerator of which is one, and the
denominator of which is the remaining number of quarterly payments due the Participant. By way of
example, if the Participant elects a twenty (20) quarter Quarterly Installment Method, the first
payment shall be 1/20 of the Account Balance (or the Fixed Date Payout Account Balance, in the
event of a Fixed Date Payout), calculated as described in this definition. The following quarter,
the payment shall be 1/19 of the Account Balance (or the Fixed Date Payout Account Balance, in the
event of a Fixed Date Payout), calculated as described in this definition.

     1.48 “Restricted Stock” shall mean shares of restricted Stock which are or have been
awarded to a Participant under an Equity Plan; provided, however, that Restricted Stock shall not
include any restricted Stock granted to a newly-hired Participant after December 15, 2005 in connection with such Participant’s
acceptance or commencement of employment with an Employer.

     1.49 “Restricted Stock Account” shall mean (i) the sum of the Participant’s Restricted
Stock Amounts, plus (ii) amounts credited/debited in accordance with all the applicable
crediting/debiting provisions of this Plan that relate to the Participant’s Restricted Stock
Account, less (iii) all distributions made to the Participant or his or her Beneficiary pursuant to
this Plan that relate to the Participant’s Restricted Stock Account. The Restricted Stock Account
balance shall be denominated in Stock Units.

     1.50 “Restricted Stock Amount” shall mean, for any grant of Restricted Stock, the
amount of such Restricted Stock deferred in accordance with Section 3.1(b) of this Plan, calculated
using the Fair Market Value of a share of Stock on the day on which such Restricted Stock would
otherwise vest, but for the election to defer.

     1.51 “Retirement,” “Retire(s)” or “Retired” shall mean a Termination
of Employment from the Company and all Employers for any reason on or after the earlier of the
attainment of (a) age sixty-five

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(65) or (b) a combined age and Years of Service equaling at least
fifty-five (55) with a minimum of ten (10) Years of Service.

     1.52 “Retirement Benefits” shall mean the benefits set forth in Section 5.1.

     1.53 “Rule 16b-3” shall mean that certain Rule 16b-3 under the Exchange Act, as such
Rule may be amended from time to time.

     1.54 “Securities Act” shall mean the Securities Act of 1933, as amended.

     1.55 “Separation from Service” shall mean, as consistent with Section 409A of the Code and
the proposed and final Department of Treasury rules, regulations and other guidance promulgated
thereunder, a Participant’s separation from service with the Company, Partnership and any Employer
as a result of the Participant’s death, Disability, Retirement or other event of termination, as
determined by the Administrator in its sole discretion.

     (a) In addition, a Separation from Service shall be deemed to occur
in the following instances:

	 	(i)	 	if a Participant’s period of leave exceeds six (6) months and
the Participant’s right to reemployment or service is not provided
either by statute or contract, then the Participant is deemed to have
experienced a Separation from Service on the first day immediately
following such six-month period;
	 
	 	(ii)	 	if a Participant continues to provide services to an
Employer, the facts and circumstances indicate that the Employer did
not intend the Participant to provide more than insignificant services
to the Employer.

     (b) Notwithstanding the foregoing, a Separation from Service shall not be
deemed to occur in the following instances:

	 	(i)	 	the mere change in capacity in which the Participant renders
service to the Company, the Partnership or any other Employer from an
Officer or Employee to Director or vice-versa;
	 
	 	(ii)	 	if the employment relationship is treated as continuing
intact while the Participant is on military leave, sick leave or other
bona fide leave of absence (such as temporary employment by the
government) if the period of such leave does not exceed six (6) months,
or if longer, so long as the individual’s right to reemployment or
service with the Company or an Employer is provided by either statute
or contract;
	 
	 	(iii)	 	the Participant continues to provide services as an Officer
or Employee at an annual rate that is at least equal to twenty percent
(20%) of the services rendered, on average, during the immediately
preceding three full calendar years of employment (or, if employed less
than three years, such lesser period) and the annual remuneration
earned during the final three full calendar years of employment is at
least equal to twenty percent (20%) of the average annual remuneration
earned during the final three full calendar years of employment (or, if
less, such lesser period);
	 
	 	(iv)	 	where an Officer or Employee continues to provide services to
a prior Employer in a capacity other than as an employee and such
Officer or 

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	 	 	 	Employee is providing services at an annual rate that is
fifty percent (50%) or more of the services rendered, on average,
during the immediately preceding three full calendar years of
employment (or if employed less than three years, such lesser period)
and the annual remuneration for such services is fifty percent (50%) or
more of the annual remuneration earned during the final three full
calendar years of employment (or if less, such lesser period).

     For purposes of this Section 1.55, the annual rate of providing services is determined based
on the measurement used to determine the Participant’s base compensation (e.g. amounts of time
required to earn salary, hourly wages, or payments for specific projects).

     1.56 “Stock” shall mean AMB Property Corporation common stock, $.01 par value.

     1.57 “Stock Unit” shall mean a notational unit representing the right to receive a
share of Stock.

     1.58 “Termination Benefits” shall mean the benefit set forth in Section 5.3.

     1.59 “Termination of Employment” shall mean the severing of employment with all Employers,
or service as a Director of the Company, voluntarily or involuntarily, for any reason other than
Disability, death or an authorized leave of absence, which constitutes a Separation from Service
with respect to the Company and Employer, as determined by the Administrator in its sole
discretion.

     1.60 “Trust” shall mean one or more trusts established pursuant to that certain Trust
Agreement, dated as of May 1, 2002, between the Company and the trustee named therein, as amended
from time to time.

     1.61 “Unforeseeable Financial Emergency” shall mean an unanticipated emergency that is
caused by an event beyond the control of the Participant that would result in severe financial
hardship to the Participant not covered by insurance, liquidation of other assets (to the extent
the liquidation itself will not cause severe financial hardship, or cessation of deferrals under
this Plan, resulting from (i) a sudden and unexpected illness or accident of the Participant or a
dependent (as defined in Section 152(a) of the Code) of the Participant, (ii) a loss of the
Participant’s property due to casualty, or (iii) such other extraordinary and unforeseeable
circumstances arising as a result of events beyond the control of the Participant, all as
determined in the sole discretion of the Administrator and which constitutes an “unforeseeable
emergency” within the meaning of Section 409A(a)(2)(B)(ii) of the Code. For the avoidance of
doubt, an Unforeseeable Financial Emergency shall not include, among other things, sending a child
to college or purchasing a home.

     1.62 “Vesting Date” shall mean, with respect to Restricted Stock deferred hereunder,
the date on which the last share or tranche of a Restricted Stock award would vest under the terms
of the Equity Plan pursuant to which it was issued and the Participant’s Restricted Stock Agreement
but for the election to defer such Restricted Stock (i.e., when a Restricted Stock award fully
vests).

     1.63 “Years of Service” shall mean each twelve (12) month period during which a Participant
is employed by an Employer, including, without limitation, service as a Director, whether or not
continuous, and including periods commencing prior to the effective date of this Plan; provided,
however, that in the case of a Participant whose employment with an Employer or service as a
Director has been interrupted by a period of twelve (12) consecutive months or more (a “Break
in Service”), his or her Years of Service prior to such Break in Service shall be disregarded
for any purpose under the Plan.

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ARTICLE 2.

SELECTION, ENROLLMENT, ELIGIBILITY

     2.1 Selection by Administrator. Participation in the Plan shall be limited to a select group of management and highly
compensated Employees and Non-Employee Directors, as determined by the Administrator in its sole
discretion. Officers and Non-Employee Directors shall be automatically eligible to participate in
the Plan. Subject to the requirements of Article 13, from the group described in the first
sentence of this Section 2.1, the Administrator shall select, in its sole discretion, additional
Employees to participate in the Plan.

     2.2 Enrollment Requirements. As a condition to participation, each Officer, selected Employee or Non-Employee Director
shall complete, execute and return to the Administrator an Election Form and a Beneficiary
Designation Form. In addition, the Administrator shall establish from time to time such other
enrollment requirements as it determines in its sole discretion are necessary.

     2.3 Eligibility Requirements; Commencement of Participation.

     (a) Eligibility; Commencement of Participation. Provided an Officer,
Non-Employee Director or Employee selected to participate in the Plan has met all enrollment
requirements set forth in this Plan and required by the Administrator, including returning
all required documents to the Administrator within the specified time period, that Employee,
Officer or Non-Employee Director shall commence participation in the Plan on the day on
which his or her Election Form first becomes effective or the date on which a contribution
is first credited to his or her Company Contribution Account or Company Matching Account.

     (b) U.S. Payroll Requirement. Compensation eligible to be deferred
under the Plan will only be deferred under a Participant’s deferral election to the extent a
Participant elects to defer compensation paid from the U.S. payroll of the Company, the
Partnership or its subsidiaries and is not covered under a non-U.S. retirement plan.

     2.4 Termination of Participation and/or Deferrals. If the Administrator determines in good faith that a Participant no longer qualifies as a
member of a select group of management or highly compensated employees, as membership in such group
is determined in accordance with Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA, or as a
Non-Employee Director, the Administrator shall have the right, in its sole discretion, to (a)
prevent the Participant from making future deferral elections and/or (b) terminate the
Participant’s participation in the Plan.

     2.5 Pre-Existing Elections. All Participant elections in effect as of the effective date of the Plan shall remain in
full force and effect until distribution of the amounts deferred thereunder unless changed or
cancelled in accordance with Section 3.3 of this Plan.

ARTICLE 3.

DEFERRAL COMMITMENTS/COMPANY CONTRIBUTIONS/CREDITING/TAXES

     3.1 Election to Defer; Effect of Election Form. Subject to the terms and conditions set forth herein and such terms and conditions as the
Administrator may determine, Participants may elect to defer Base Annual Salary, Annual Bonus,
Directors Fees and Restricted Stock Amounts by timely completing and delivering to the
Administrator an Election Form. Subject to the terms and conditions herein, after a Plan Year
commences, such deferral election shall be irrevocable and shall continue for the entire Plan Year
and subsequent years until its termination upon a Participant’s Termination of Employment, complete
distribution of benefits or amendment pursuant to Section 3.2 or Section 3.3.

     (a) Base Annual Salary, Annual Bonus and/or Directors Fees. Subject
to any terms and conditions imposed by the Administrator, Participants may elect to defer,
under the Plan,

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Base Annual Salary, Annual Bonus and/or Directors Fees. For these elections
to be valid with respect to deferrals of Base Annual Salary, Annual Bonus and/or Directors
Fees, the Election Form must be completed and signed by the Participant, timely delivered to
the Administrator no later than December 31 of the year immediately preceding the Plan Year
for which the Base Annual Salary, Annual Bonus and/or Director Fees are earned or such
earlier date determined and set by the Administrator in its sole discretion, and accepted by
the Administrator. If no such Election Form is timely delivered for a Plan Year, the Annual
Deferral Amount shall be zero for that Plan Year. Notwithstanding the foregoing, for Base
Annual Salary, Annual Bonus and/or Director Fees received on or prior to December 31, 2006,
an Election Form shall be considered timely delivered to the Administrator if such election
does not cause the deferral of such Base Annual Salary, Annual Bonus and/or Director Fees to
become subject to a penalty tax under Section 409A of the Code and the proposed and final
Department of Treasury rules, regulations and other guidance promulgated thereunder.

     (b) Restricted Stock. Subject to any terms and conditions imposed by
the Administrator, Participants may elect to defer, under the Plan, Restricted Stock
Amounts. For an election to defer Restricted Stock Amounts to be valid, the Election Form
that designates such Restricted Stock must cover an entire award of Restricted Stock, be
completed and signed by the Participant, timely delivered to the Administrator no later than
December 31 of the year immediately preceding the Plan Year in which such Restricted Stock
is to be earned or such earlier date determined and set by the Administrator in its sole
discretion, and accepted by the Administrator. Notwithstanding the foregoing, for grants of
Restricted Stock received on or prior to December 31, 2006, an Election Form shall be
considered timely delivered to the Administrator if such election does not cause the
deferral of such Restricted Stock to become subject to a penalty tax under Section 409A of
the Code and the proposed and final Department of Treasury rules, regulations and other
guidance promulgated thereunder.

     (c) Dividends. Stock Dividends and Non-Stock Dividends (as defined
in Section 3.6(e) below) payable with respect to Stock Units allocated to the Participant’s
Accounts shall be deferred in accordance with the Participant’s deferral election made in
connection with the related deferral of Restricted Stock Amounts.

     3.2 Redeferral. A Participant may annually change his or her Fixed Date Payout (as defined in Section 4.1)
election to a subsequent fixed date by submitting a new Election Form to the Administrator,
provided, however, that (a) such change (i) must occur at least twelve (12) months prior to the
originally elected fixed date, (ii) shall not be given any effect unless a full calendar year would
have passed between the date upon which such Election Form is submitted and the originally elected
fixed date and (iii) must provide for at least five full calendar years to pass between the
originally elected fixed date and the subsequent fixed date designated in such form occurs and (b)
the Election Form is accepted by the Administrator in its sole discretion. The Election Form most
recently accepted by the Administrator shall govern the payout of the Participant’s benefits under
the Plan.

     3.3 Special Elections During Transition Period.

     (a) Special Elections in 2003, 2004 and 2005 regarding Deferrals. In
accordance with Internal Revenue Service Notice 2005-1, the proposed regulations under
Section 409A of the Code, and in reliance, without limitation, on the transition rules,
performance-based compensation rule, and certain forfeitable rights rule, as applicable:

	 	(i)	 	on or before December 31, 2003, Employee Participants were
permitted to defer up to 100% of individual tranches of Restricted
Stock awards granted prior to December 31, 2004 and vesting January 1,
2005 with a minimum deferral period of three years from the vesting
date of such tranche;

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	 	(ii)	 	on or before December 31, 2004, Employee Participants were
permitted to defer up to 100% of individual tranches of Restricted
Stock awards granted prior to December 31, 2005 and vesting January 1,
2006 with a minimum deferral period of three years from the vesting
date of such tranche;
	 
	 	(iii)	 	on or before June 30, 2005, Employee Participants were
permitted to defer up to 100% of the Annual Bonus and Restricted Stock
to be granted in 2006 for performance in 2005 with a minimum deferral
period of three years from January 1, 2006 with respect to the Annual
Bonus, and the Vesting Date with respect to the Restricted Stock;
	 
	 	(iv)	 	on or before December 31, 2005, Employee Participants were
permitted to defer up to 100% of the tranches of Restricted Stock
awards granted prior to December 15, 2005 and vesting January 1, 2006
or later and not previously deferred under the Plan with a minimum
deferral period of five years from January 1, 2006 for the entire
grant;
	 
	 	(v)	 	on or before March 15, 2005, Non-Employee Directors were
permitted to defer up to 100% of Director Fees for 2005 service with a
minimum deferral period of three years in conjunction with
transitioning to a new fiscal year for the Board;
	 
	 	(vi)	 	on or before May 31, 2004, Non-Employee Directors were
permitted to defer up to 100% of the Restricted Stock granted in May
2004 with a minimum deferral period of three years from the Vesting
Date; and
	 
	 	(vii)	 	on or before March 15, 2005, Non-Employee Directors were
permitted to defer up to 100% of the Restricted Stock granted in May
2005 with a minimum deferral period of 3 years from the grant date.

     (b) Changes and Cancellations During Transition Period.
Notwithstanding anything in Sections 3.1, 3.2 or 3.3 to the contrary and without being
subject to the requirements in Section 3.2, during the relevant transition rule period
prescribed by Internal Revenue Service Notice 2005-1 and the proposed regulations
promulgated under Section 409A of the Code, on or prior to December 31, 2006, a Participant
may cancel his or her election or change the time and form of distribution of his or her
election to an alternative payout period to the extent such changes will not cause any
deferral associated with such election to become subject to a penalty tax under Section 409A
of the Code and the proposed and final Department of Treasury rules, regulations and other
guidance promulgated thereunder by submitting a new Election Form to the Administrator, provided that such Election Form is accepted by the Administrator in its
sole discretion.

     3.4 Annual Minimum. For each Plan Year, the annual aggregate minimum deferral amount for each Participant is
$5,000. If an election is made for less than such minimum amount, or if no election is made, the
amount deferred shall be zero.

     3.5 Maximum Deferral.

     (a) Base Annual Salary, Annual Bonus and Directors Fees. For each
Plan Year, a Participant may elect to defer, as his or her Annual Deferral Amount, up to
100% of his or her Base Annual Salary, Annual Bonus and/or Directors Fees.

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     (b) Restricted Stock Amounts. A Participant may elect to defer up to
100% of his or her Restricted Stock. Restricted Stock Amounts may also be limited by other
terms or conditions set forth in the plan or agreement under which such Restricted Stock is
granted.

     3.6 Accounts; Crediting of Deferrals. Solely for record keeping purposes, the Administrator shall establish a Deferral Account, a
Company Contribution Account, a Company Matching Account and a Restricted Stock Account for each
Participant. A Participant’s Accounts shall be credited with the deferrals made by him or her or
on his or her behalf by his or her Employer under this Article 3 and shall be credited (or charged,
as the case may be) with the hypothetical or deemed investment earnings and losses determined
pursuant to Section 3.8, and charged with distributions made to or with respect to him or her.

     (a) Annual Deferral Amounts. For each Plan Year, the Base Annual
Salary portion of the Annual Deferral Amount shall be withheld and credited to the
Participant’s Deferral Account at the time of each regularly scheduled Base Annual Salary
payroll in either the percentages or dollar amounts specified by the Participant in the
Election Form, as adjusted from time to time for increases and decreases in Base Annual
Salary. The Annual Bonus and/or Directors Fees portion of the Annual Deferral Amount shall
be withheld and credited to the Participant’s Deferral Account at the time the Annual Bonus
or Directors Fees are or otherwise would be paid to the Participant, whether or not this
occurs during the Plan Year itself.

     (b) Annual Company Contribution Amount. For each Plan Year, an
Employer, in its sole discretion, may, but is not required to, credit any amount it desires
to any Participant’s Company Contribution Account under this Plan, which amount shall be for
that Participant the Annual Company Contribution Amount for that Plan Year. The amount so
credited to a Participant may be smaller or larger than the amount credited to any other
Participant, and the amount credited to any Participant for a Plan Year may be zero, even
though one or more other Participants receive an Annual Company Contribution Amount for that
Plan Year. The Annual Company Contribution Amount, if any, shall be credited to
Participants’ Company Contribution Accounts on the date declared by the Employer.

     (c) Annual Company Matching Amount. For each Plan Year, an Employer,
in its sole discretion, may, but is not required to, credit any amount it desires to any
Participant’s Company Matching Account under this Plan, which amount shall be for that
Participant the Annual Company Matching Amount for that Plan Year. The amount so credited
to a Participant may be smaller or larger than the amount credited to any other Participant,
and the amount credited to any Participant for a Plan Year may be zero, even though one or
more other Participants receive an Annual Company Contribution Amount for that Plan Year. The
Annual Company Contribution Amount, if any, shall be credited to Participants’ Company
Matching Accounts on the date declared by the Employer.

     (d) Restricted Stock Amounts. Restricted Stock Amounts shall be
credited/debited to the Participant on the books of the Employer in connection with such an
election on the vesting date of the individual tranche of the award. A Participant’s
Restricted Stock Account shall be credited with that number of Stock Units equal to the
quotient obtained by dividing (i) the aggregate amount of the Restricted Stock Amount then
vesting and so deferred by (ii) the Fair Market Value of a share of Stock on the vesting
date. Participants who elect to defer Restricted Stock Amounts will have no rights as
stockholders of the Company with respect to allocations made to their Restricted Stock
Accounts other than the right to receive dividend allocations as described in Section
3.6(e).

     (e) Dividends. Stock and Non-Stock Dividends payable with respect to
Stock Units allocated to a Participant’s Accounts may be credited by the Administrator to
the Participant’s

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Accounts in the form of additional Stock Units or fractional Stock Units
as of the date upon which the Company makes such a distribution to its stockholders, as
follows:

	 	(i)	 	Each of the Participant’s Accounts would be credited with an
additional number of Stock Units equal to the number of shares of Stock
distributable as a dividend with respect to Stock Units credited to
such Account (“Stock Dividends”); and
	 
	 	(ii)	 	In the event of a cash dividend or other non-Stock amount
distributable with respect to Stock (“Non-Stock Dividends”),
each of the Participant’s Accounts would be credited with an amount in
cash equal to such Non-Stock Dividend. Notwithstanding the foregoing,
such cash amounts shall not be credited to a Restricted Stock Account.

     Alternatively, the Administrator, in its discretion, may provide for Stock or Non-Stock
Dividends to be credited to a Participant’s Accounts, including a Participant’s Deferral
Account, in a different manner.

     3.7 Vesting. A Participant shall at all times be 100% vested in his or her Deferral Account, Restricted
Stock Account, Company Contribution Account and Company Matching Account.

     3.8 Earnings Credits or Losses. In accordance with, and subject to, the rules and procedures that are established from time to
time by the Administrator, in its sole discretion, amounts shall be credited or debited to a
Participant’s Account Balance in accordance with the following rules:

     (a) Election of Measurement Funds. A Participant, in connection
with his or her initial deferral election in accordance with Section 3.1 above, shall elect,
on the Election Form, one or more Measurement Fund(s) (as described in Section 3.8(c) below)
to be used to determine the additional amounts to be credited to his or her Account Balance,
unless changed in accordance with the next sentence. The Participant may (but is not
required to) elect, by submitting an Election Form to the Administrator that is accepted by
the Administrator, to add or delete one or more Measurement Fund(s) to be used to determine
the additional amounts to be credited to his or her Account Balance, or to change the
portion of his or her Account Balance allocated to each previously or newly elected
Measurement Fund. If an election is made in accordance with the previous sentence, it shall
become effective as soon as administratively practicable and shall continue thereafter until changed in accordance with the previous
sentence. Changes may be made to allocations at any time during the Plan Year, up to a
maximum of six (6) changes per Participant per Plan Year.

     (b) Proportionate Allocation. In making any election described in
Section 3.8(a) above, the Participant shall specify on the Election Form, in increments of
whole percentage points (1%), the percentage of his or her Account Balance to be allocated
to a Measurement Fund (as if the Participant was making an investment in that Measurement
Fund with that portion of his or her Account Balance).

     (c) Measurement Funds. The Administrator shall from time to time
select types of Measurement Funds and specific Measurement Funds for deemed investment
designation by Participants for the purpose of crediting additional amounts to his or her
Account Balance. As necessary, the Administrator may, in its sole discretion, discontinue,
substitute or add a Measurement Fund. The Administrator shall notify the Participants of
the types of Measurement Funds and the specific Measurement Funds selected from time to
time.

     (d) Crediting or Debiting Method. The performance of each elected
Measurement Fund (either positive or negative) will be determined by the Administrator, in
its sole discretion,

-13-

 

based on the performance of the Measurement Funds themselves. A
Participant’s Account Balance shall be credited or debited as frequently as is
administratively feasible, but no less often than quarterly, based on the performance of
each Measurement Fund selected by the Participant, as determined by the Administrator in its
sole discretion.

     (e) No Actual Investment. Notwithstanding any other provision of
this Plan that may be interpreted to the contrary, the Measurement Funds are to be used for
measurement purposes only, and a Participant’s election of any such Measurement Fund, the
allocation to his or her Account Balance thereto, the calculation of additional amounts and
the crediting or debiting of such amounts to a Participant’s Account Balance shall
not be considered or construed in any manner as an actual investment of his or her
Account Balance in any such Measurement Fund. In the event that the Company or the Trustee
(as that term is defined in the Trust), in its own discretion, decides to invest funds in
any or all of the Measurement Funds, no Participant shall have any rights in or to such
investments themselves. Without limiting the foregoing, a Participant’s Account Balance
shall at all times be a bookkeeping entry only and shall not represent any investment made
on his or her behalf by the Employer or the Trust; the Participant shall at all times remain
an unsecured creditor of the Employers.

     (f) Stock Accounts. Notwithstanding any other provision of this Plan
to the contrary Restricted Stock Amounts may not be allocated to any Measurement Fund. A
Participant’s Restricted Stock Account will be credited with any Restricted Stock Amounts
deferred pursuant to Section 3.6(d) and any dividends deferred pursuant to Section 3.1(c).

     3.9 Distributions. Any distribution with respect to a Participant’s Account Balance shall be charged to the
appropriate account as of the date such payment is made by the Employer or the trustee of the Trust
which may be established for the Plan.

ARTICLE 4.

FIXED DATE PAYOUTS

     4.1 Fixed Date Payout. In connection with each Election Form, a Participant may irrevocably elect to receive a
future “Fixed Date Payout” from the Plan of his or her Fixed Date Payout Account Balance. Subject
to the Deduction Limitation and the other terms and conditions of this Plan, each Fixed Date Payout
elected shall be paid out no earlier than the first day of any Plan Year designated by the
Participant that is (i) with respect to an Annual Deferral Amount, at least one (1) Plan Year after
the Plan Year in which the Annual Deferral Amount is actually deferred or (ii) with respect to a
Restricted Stock Amount, the Plan Year of the Vesting Date (the “Earliest Fixed Date Payout Date”).
By way of example, if a one (1) year Fixed Date Payout is elected for Annual Deferral Amounts that
are deferred in the Plan Year commencing January 1, 2006, the one (1) year Fixed Date Payout would
become payable no earlier than January 1, 2007; and, if a Fixed Date Payout is elected for a
Restricted Stock Amount granted on March 1, 2006 with a five (5) year vesting period on January 1
of each year, the Fixed Date Payout would become payable no earlier than January 1, 2011. A
Participant shall elect on each Election Form on which a Fixed Date Payout is elected to receive
the Fixed Date Payout Account Balance applicable to such election in a lump sum or pursuant to a
Quarterly or Annual Installment Method over a period of up to ten (10) years, payable in the first
(1st) week of January, April, July, and October, as applicable. If a Participant does
not elect to have his or her Fixed Date Payout Account Balance paid in accordance with the
Quarterly or Annual Installment Method, then such benefit shall be payable in a lump sum. The lump
sum payment shall be made no later than sixty (60) days after the last day of any Plan Year
designated by the Participant that is after the Earliest Fixed Date Payout Date. Any payment made
shall be subject to the Deduction Limitation.

     4.2 Other Benefits Take Precedence Over Fixed Date. Should an event occur that triggers a benefit under Article 5 or 6, any Annual Deferral
Amount or Restricted Stock Amount, plus amounts

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credited or debited thereon, that is subject to a
Fixed Date Payout election under Section 4.1 shall not be paid in accordance with Section 4.1 but
shall be paid in accordance with the other applicable Article.

ARTICLE 5.

DISTRIBUTIONS

     5.1 Retirement Benefit.

     (a) Retirement Benefit. A Participant who Retires, shall receive, as
a Retirement Benefit, his or her vested Account Balance. A Participant, in connection with
his or her commencement of participation in the Plan, shall elect on an Election Form to
receive the Retirement Benefit in a lump sum or pursuant to a Quarterly or Annual
Installment Method over a period of up to ten (10) years, payable in the first
(1st) week of January, April, July, and October, as applicable. If a Participant
does not make any election with respect to the payment of the Retirement Benefit, then such
benefit shall be payable in a lump sum. The lump sum payment shall be made, or installment
payments shall commence, no later than the later of (i) December 31 of the calendar year
during which the Participant Retires or (ii) the fifteenth (15th) day of the
third (3rd) month following the date of such Retirement.

     (b) Death Prior to Completion of Retirement Benefit or Termination
Benefit. If a Participant dies after Retirement but before the Retirement Benefit due
under this Section 5.1 is paid in full or after a Termination of Employment but before the
Termination Benefit under Section 5.3 is paid in full, the Participant’s unpaid Retirement
Benefit under this Section 5.1 or Termination Benefit under Section 5.3 shall be paid to the
Participant’s Beneficiary over the remaining number of months and in the same amounts as
such Retirement Benefit or Termination Benefit would have been paid to the Participant had
the Participant survived.

     5.2 Pre-Retirement Survivor Benefit. A Participant’s Beneficiary shall receive a Pre-Retirement Survivor Benefit equal to the
Participant’s vested Account Balance if the Participant dies before he or she experiences a
Termination of Employment or suffers a Disability. The Pre-Retirement Survivor Benefit shall be
paid to the Participant’s Beneficiary (a) if a Fixed Date Payout has not commenced prior to
Participant’s death, commencing no later than the later of (i) December 31 of the calendar year
during which the Participant died or (ii) the fifteenth (15th) day of the third (3rd) month
following the Participant’s death, and being paid in a lump sum, if so elected by Participant, or
in installment payments, if so elected by Participant, over the number of months and in the same
amounts as that benefit would have been paid to the Participant had the Participant survived, and
(b) if a Fixed Date Payout has commenced prior to Participant’s death, over the remaining number of
months and in the same amounts as that benefit would have been paid to the Participant had the
Participant survived.

     5.3 Termination Benefit. A Participant shall receive a Termination Benefit, which shall be equal to the
Participant’s vested Account Balance if a Participant experiences a Termination of Employment prior
to his or her Retirement, death or Disability. A Participant’s Termination Benefit shall be paid in
a lump sum; except that if the Participant is a Non-Employee Director such Participant may elect on
an Election Form pursuant to Section 3.1 above to receive the Termination Benefit in a lump sum or
pursuant to a Quarterly or Annual Installment Method over a period of up to ten (10) years, payable
in the first (1st) week of January, April, July and October, as applicable; however, if
no such election is made with respect to the payment of the Termination Benefit, then such benefit
shall be payable in a lump sum. The lump sum payment shall be made, or installment payments shall
commence, no later than the later of (i) December 31 of the calendar year during which the
Participant’s Termination of Employment occurred or (ii) the fifteenth (15th) day of the
third (3rd) month following the Participant’s Termination of Employment.

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     5.4 Change in Control Benefit.

     (a) Change in Control Benefit. A Participant shall receive a Change
in Control Benefit, which shall be equal to the Participant’s vested Account Balance in the
event of a Change in Control. A Participant’s Change in Control Benefit due under this
Section 5.4 shall be paid in a lump sum. The lump sum payment shall be made as soon as
administratively practicable upon the Change in Control but in no event later than the later
of (i) December 31 of the calendar year during which the Change in Control occurs or (ii)
the fifteenth (15th) day of third (3rd) month following the date of
such Change in Control.

     (b) Change in Control Benefit to Take Precedence Over Other Benefits.
Should an event occur that triggers a Change in Control Benefit under this Section 5.4, any
Annual Deferral Amount, plus amounts credited or debited thereon, that is subject to an
existing payout under Section 4.1 shall not be paid in accordance with such Article but
shall be paid in accordance with this Section 5.4.

     5.5 Disability Benefit. The Participant shall receive a Disability Benefit, which shall be equal to the
Participant’s vested Account Balance in the event of the Participant’s Disability, as determined by
the Administrator. Payment of a Participant’s Disability Benefit under this Section 5.5 shall be
paid in a lump sum. If a Participant’s Disability occurs after Retirement or after a Termination
of Employment but before the Retirement Benefit under Section 5.1 or the Termination Benefit under
Section 5.3 is paid in full, the Participant’s unpaid Retirement Benefit under Section 5.1 or
Termination Benefit under Section 5.3 shall continue and shall be paid to the Participant over the
remaining number of months and in the same amounts as such Retirement Benefit or such Termination Benefit would have been paid to the
Participant had the Participant survived.

     5.6 Stock Distributions. All Account Balance distributions from a Participant’s Restricted Stock Account shall be in
the form of whole shares of Stock equivalent to the whole Stock Units credited to the Participant’s
Restricted Stock Account. Distributions in respect of fractional Stock Units shall be made in
cash. In the case of any Quarterly or Annual Installment Method, the precise number of shares
delivered in each installment shall be determined in such a manner as to cause each installment to
be essentially equal based on the Stock Units credited to the Participant’s accounts as of the date
of the first installment, including dividend equivalents credited prior to that date. Dividend
equivalents credited to a Participant’s Restricted Stock Account after the date of the first
installment will be distributed as part of the final installment. Any fractional Stock Units
remaining at the time of the final installment distribution shall be payable in cash.

     5.7 Delayed Distributions for Employee Participants. Notwithstanding any provision of this Plan to the contrary, upon the Termination of
Employment or Retirement of a Participant who is an Officer or Employee for any reason other than
death or Disability, any Account Balance distribution that otherwise would be paid to Participant
during the period of time beginning with such Termination of Employment or Retirement and ending
six months thereafter shall not be paid during such six-month period but shall be delayed and
instead paid in a lump sum as soon as administratively practicable following such six-month delay
period. There shall be no such six-month delay period in the event of and any six-month delay
period which has already commenced shall terminate immediately upon (i) the Participant’s death or
Disability or (ii) a Change in Control. For the avoidance of doubt, any Quarterly or Annual
Installment Method payments due to Participant after any such delay period shall not be accelerated
by application of this Section 5.7 and may only be accelerated to the extent such acceleration is
provided for in another Plan provision. The provisions of this Section 5.7 shall only apply to the
extent required to avoid Participant’s incurrence of any penalty tax or interest under Section 409A
of the Code or any proposed and final Department of Treasury rules, regulations and other guidance
promulgated thereunder.

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ARTICLE 6.

UNFORESEEABLE FINANCIAL EMERGENCIES

     6.1 Withdrawal Payout/Suspensions for Unforeseeable Financial Emergencies. If a Participant experiences an Unforeseeable Financial Emergency, the Participant may
petition the Administrator to (i) suspend any deferrals required to be made by a Participant and/or
(ii) receive a partial or full payout from the Plan. The payout shall not exceed the lesser of the
Participant’s vested Account Balance, calculated as if such Participant were receiving a
Termination Benefit under Section 5.3, or the amount reasonably needed to satisfy the Unforeseeable
Financial Emergency. If, subject to the sole discretion of the Administrator, the petition for a
suspension and/or payout is approved, suspension shall take effect upon the date of approval and
any payout shall be made within sixty (60) days of the date of approval but in no event shall any
payout be made following the later of (a) December 31 of the calendar year during which the
Unforeseeable Financial Emergency occurs and (b) the fifteenth (15th) day of the third
(3rd) month following the date of such Unforeseeable Financial Emergency. The payment
of any amount under this Section 6.1 shall not be subject to the Deduction Limitation.

ARTICLE 7.

BENEFICIARY DESIGNATION

     7.1 Beneficiary. Each Participant shall have the right, at any time, to designate his or her
Beneficiary(ies) (both primary as well as contingent) to receive any benefits payable under the
Plan to a beneficiary upon the death of a Participant. The Beneficiary designated under this Plan
may be the same as or different from the Beneficiary designation under any other plan of an
Employer in which the Participant participates.

     7.2 Beneficiary Designation; Change; Spousal Consent. A Participant shall designate his or her Beneficiary by completing and signing the
Beneficiary Designation Form, and returning it to the Administrator or its designated agent. A
Participant shall have the right to change a Beneficiary by completing, signing and otherwise
complying with the terms of the Beneficiary Designation Form and the Administrator’s rules and
procedures, as in effect from time to time. Upon the acceptance by the Administrator of a new
Beneficiary Designation Form, all Beneficiary designations previously filed shall be canceled. The
Administrator shall be entitled to rely on the last Beneficiary Designation Form filed by the
Participant and accepted by the Administrator prior to his or her death.

     7.3 Acknowledgment. No designation or change in designation of a Beneficiary shall be effective until received
and acknowledged in writing by the Administrator or its designated agent.

     7.4 No Beneficiary Designation. If a Participant fails to designate a Beneficiary as provided in Sections 7.1, 7.2 and 7.3
above or, if all designated Beneficiaries predecease the Participant or die prior to complete
distribution of the Participant’s benefits, then the Participant’s designated Beneficiary shall be
deemed to be his or her surviving spouse. If the Participant has no surviving spouse, the benefits
remaining under the Plan to be paid to a Beneficiary shall be payable to the executor or personal
representative of the Participant’s estate.

     7.5 Doubt as to Beneficiary. If the Administrator has any doubt as to the proper Beneficiary to receive payments
pursuant to this Plan, the Administrator shall have the right, exercisable in its discretion, to
cause the Participant’s Employer to withhold such payments until this matter is resolved to the
Administrator’s satisfaction.

     7.6 Discharge of Obligations. The payment of benefits under the Plan to a Beneficiary shall fully and completely
discharge all Employers and the Administrator from all further obligations under this Plan with
respect to the Participant, and that Participant’s Election Form shall terminate upon such full
payment of benefits.

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ARTICLE 8.

LEAVE OF ABSENCE

     8.1 Paid Leave of Absence. If a Participant is authorized by the Participant’s Employer for any reason to take a paid
leave of absence from the employment of the Employer, the Participant shall continue to be
considered employed by the Employer and the Annual Deferral Amount shall continue to be withheld
during such paid leave of absence in accordance with Section 3.6.

ARTICLE 9.

TERMINATION, AMENDMENT OR MODIFICATION

     9.1 Termination With Respect to Account Balances. The Plan shall not terminate with respect to Account Balances and any Employers, except in a
manner that complies with Section 409A of the Code and the proposed and final Department of
Treasury rules, regulations and other guidance promulgated thereunder. Upon a termination of the
Plan with respect to Account Balances that complies with Section 409A of the Code, each Participant
shall be entitled to receive his or her Account Balance in a lump sum payment as soon as
practicable following the first date such payment can be made in compliance with Section 409A of
the Code but in no event following the last date such payment can be made in compliance with
Section 409A of the Code. During the period of time between the date the Plan is terminated with
respect to Account Balances and the date of such payment, Account Balance distributions, including
those under a Quarterly or Annual Installment Method, which otherwise would be made pursuant to the
Plan shall be made without regard to such termination.

     9.2 Amendment. An Employer may, at any time, amend or modify the Plan in whole or in part with respect to that
Employer by the action of its board of directors, compensation committee of its board of directors
or similar governing body; provided, however, that no amendment or modification shall be effective
to decrease or restrict the value of a Participant’s Account Balance in existence at the time the
amendment or modification is made, calculated as if the Participant had experienced a Termination
of Employment as of the effective date of the amendment or modification or, if the amendment or
modification occurs after the date upon which the Participant was eligible to Retire, the
Participant had Retired as of the effective date of the amendment or modification. The amendment
or modification of the Plan shall not affect any Participant or Beneficiary who has become entitled
to the payment of benefits under the Plan as of the date of the amendment or modification.

     9.3 Effect of Payment. The full payment of the applicable benefit under Article 4 of the Plan or under Articles 5
and 6 of the Plan shall completely discharge all obligations to a Participant and his or her
designated Beneficiaries under this Plan and the Participant’s Plan Agreement shall terminate.

ARTICLE 10.

ADMINISTRATION

     10.1 Administrator Duties. The Committee appointed pursuant to Section 10.3 shall be the Administrator and shall conduct
the general administration of the Plan in accordance with the Plan and shall have all the necessary
power and authority to carry out that function. Members of the Administrator may be Participants
under this Plan. Any individual serving on the Administrator who is a Participant shall not vote
or act on any matter relating solely to himself or herself. Among the Committee’s necessary powers and duties are the
following:

     (a) Except to the extent provided otherwise by Article 13, to delegate all or
part of its function as Administrator to others and to revoke any such delegation.

     (b) To determine questions of eligibility of Participants and their
entitlement to benefits, subject to the provisions of Articles 11 and 13.

-18-

 

     (c) To select and engage attorneys, accountants, actuaries, trustees,
appraisers, brokers, consultants, administrators, physicians or other persons to render
service or advice with regard to any responsibility the Administrator has under the Plan, or
otherwise, to designate such persons to carry out fiduciary responsibilities (other than
trustee responsibilities) under the Plan, and (with the Committee, the Employers and their
officers, directors, trustees and Employees) to rely upon the advice, opinions or valuations
of any such persons, to the extent permitted by law, being fully protected in acting or
relying thereon in good faith.

     (d) To interpret the Plan for purpose of the administration and application
of the Plan, in a manner not inconsistent with the Plan or applicable law and to amend or
revoke any such interpretation.

     (e) To conduct claims procedures as provided in Article 11.

     10.2 Binding Effect of Decisions. The decision or action of the Administrator with respect to any question arising out of or
in connection with the administration, interpretation and application of the Plan, Section 409A of
the Code and the proposed and final Department of Treasury rules, regulations and other guidance
promulgated thereunder shall be final and conclusive and binding upon all persons having any
interest in the Plan.

     10.3 Committee. The Committee shall consist solely of two or more Non-Employee Directors appointed by and
holding office at the pleasure of the Board, each of whom is both a “non-employee director” as
defined by Rule 16b-3 and an “outside director” for purposes of Section 162(m) of the Code.
Appointment of Committee members shall be effective upon acceptance of appointment. Committee
members may resign at any time by delivering written notice to the Board. Vacancies in the
Committee may be filled by the Board.

     10.4 Indemnification. All Employers shall indemnify and hold harmless any of their officers, Directors, Committee
members or Employees who are involved in the administration of the Plan against any and all claims,
losses, damages, expenses or liabilities arising out of the good faith performance of their
administrative functions.

     10.5 Employer Information. To enable the Administrator to perform its functions, each Employer shall supply full and
timely information to the Administrator on all matters relating to the compensation of its
Participants, the date and circumstances of the Retirement, Disability, death or Termination of
Employment of its Participants, and such other pertinent information as the Administrator may
reasonably require.

ARTICLE 11.

CLAIMS PROCEDURES

     11.1 Presentation of Claim. Any Participant or Beneficiary of a deceased Participant (such Participant or Beneficiary being
referred to below as a “Claimant”) may deliver to the Administrator a written claim for a
determination with respect to the amounts distributable to such Claimant from the Plan. If such a
claim relates to the contents of a notice received by the Claimant, the claim must be made within
sixty (60) days after such notice was received by the Claimant. All other claims must be made
within one hundred eighty (180) days of the date on which the event that caused the claim to arise
occurred. The claim must state with particularity the determination desired by the Claimant.

     11.2 Notification of Decision. The Administrator shall consider a Claimant’s claim within a reasonable time, and shall notify
the Claimant in writing:

     (a) that the Claimant’s requested determination has been made, and that the
claim has been allowed in full; or

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     (b) that the Administrator has reached a conclusion contrary, in whole or in
part, to the Claimant’s requested determination, and such notice must set forth in a manner
calculated to be understood by the Claimant:

	 	(i)	 	the specific reason(s) for the denial of the claim, or any
part of it;
	 
	 	(ii)	 	specific reference(s) to pertinent provisions of the Plan
upon which such denial was based;
	 
	 	(iii)	 	a description of any additional material or information
necessary for the Claimant to perfect the claim, and an explanation of
why such material or information is necessary; and
	 
	 	(iv)	 	appropriate information as to the steps to be taken if the
Claimant wishes to submit his or her claim for review pursuant to the
claim review procedure set forth in Section 11.3 below, including the
time limits applicable to such procedures, and a statement of the
Claimant’s right to bring a civil action under Section 502(a) of ERISA
following an adverse decision upon review.

     Any notice pursuant to this Section 11.2 shall be given within a reasonable period of time but
no later than ninety (90) days after the claim is filed, unless special circumstances require an
extension of time for processing the claim. If such extension is required, written notice shall be
furnished to the Claimant within ninety (90) days of the date the claim was filed stating the
special circumstances requiring an extension of time and the date by which a decision on the claim
can be expected, which shall be no more than one hundred eighty (180) days from the date the claim
was filed.

     11.3 Review of a Denied Claim. Within sixty (60) days after receiving a notice from the Administrator that a claim has been
denied, in whole or in part, a Claimant (or the Claimant’s duly authorized representative) may file
with the Administrator a written request for a review of the denial of the claim specifying in
detail each of Claimant’s contentions, the grounds on which each is based, all facts in support of
the request, and any other matters which the Claimant deems pertinent. The Claimant (or the
Claimant’s duly authorized representative):

     (a) may review and/or copy free of charge pertinent documents, records and
other information relevant to the Claimant’s claim;

     (b) may submit issues, written comments or other documents, records or other
information relating to the claim; and/or

     (c) may request a hearing, which the Administrator, in its sole discretion,
may grant.

     Any such review by the Administrator shall take into account all comments, documents, records
and other information submitted by the Claimant relating to the claim, without regard to whether
such information was submitted or considered in the initial claim determination.

     11.4 Decision on Review. The Administrator shall render its decision on review promptly, and not later than sixty (60)
days after the filing of a written request for review of the denial, unless a hearing is held or
other special circumstances require additional time, in which case the Administrator’s decision
must be rendered within one hundred twenty (120) days after such date. Such decision must be
written in a manner calculated to be understood by the Claimant, and it must contain:

     (a) specific reasons for the decision;

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     (b) specific reference(s) to the pertinent Plan provisions upon which the
decision was based; and

     (c) a statement that the Claimant is entitled to receive upon request and
free of charge reasonable access to and copies of all documents, records and other
information relevant to the Claimant’s claim for benefits;

     (d) a statement of the Claimant’s right to bring an action under Section
502(a) of ERISA; and

     (e) such other matters as the Administrator deems relevant.

     11.5 Designation. The Administrator may designate any other person of its choosing to make any determination
otherwise required under this Article.

     11.6 Arbitration. A Claimant whose appeal has been denied under Section 11.4 shall have the right to submit
said claim to final and binding arbitration in the stetate ofthe state of California pursuant to
the rules of the American Arbitration Association. Any such requests for arbitration must be filed
by written demand to the American Arbitration Association within sixty (60) days after receipt of
the decision regarding the appeal. The costs and expenses of arbitration, including the fees of
the arbitrators, shall be borne by the losing party. The prevailing party shall recover as
expenses all reasonable attorney’s fees incurred by it in connection with the arbitration
proceeding or any appeals therefrom.

ARTICLE 12.

TRUST

     12.1 Establishment of the Trust. The Company and the Partnership shall establish the Trust, and each Employer shall at least
annually transfer over to the Trust such assets as the Employer determines, in its sole discretion,
are necessary to provide, on a present value basis, for its respective future liabilities created
with respect to the Account Balances for such Employer’s Participants for all periods prior to the
transfer, as well as any debits and credits to the Participants’ Account Balances for all periods
prior to the transfer, taking into consideration the value of the assets in the trust at the time
of the transfer.

     12.2 Interrelationship of the Plan and the Trust. The provisions of the Plan shall govern the rights of a Participant to receive distributions pursuant to the Plan. The provisions of the Trust shall govern the rights of the
Employers, Participants and the creditors of the Employers to the assets transferred to the Trust.
Each Employer shall at all times remain liable to carry out its obligations under the Plan.

     12.3 Investment of Trust Assets. The Trustee of the Trust shall be authorized, upon written instructions received from the
Administrator or investment manager appointed by the Administrator, to invest and reinvest the
assets of the Trust in accordance with the applicable Trust Agreement, including the disposition of
Stock and reinvestment of the proceeds in one or more investment vehicles designated by the
Administrator.

     12.4 Distributions From the Trust. Each Employer’s obligations under the Plan may be satisfied with Trust assets distributed
pursuant to the terms of the Trust, and any such distribution shall reduce the Employer’s
obligations under this Plan.

     12.5 Limitations on Stock Distributed from the Trust.

     (a) Distribution Limit. Notwithstanding anything to the contrary in
this Plan, no contribution of Stock to or distribution of Stock from the Trust shall be made
to the extent that

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such contribution or distribution could impair the Company’s status as a
real estate investment trust, within the meaning of Sections 856 through 860 of the Code, as
determined by the Company, in its sole discretion.

     (b) Reduction of Distributions. If necessary, the Administrator may
reduce the amount of any Stock and/or Stock Units to be distributed under the Plan (in which
case, such Stock and/or Stock Units will be distributed to the Participant in a manner
determined by the Administrator to comply with the distribution limit, if any, under Section
12.5(a).

ARTICLE 13.

PROVISIONS RELATING TO SECURITIES LAWS

     13.1 Designation of Participants. With respect to any Employee or Non-Employee Director who is then subject to Section 16 of
the Exchange Act, only the Committee may designate such Employee or Non-Employee Director as a
Participant in the Plan.

     13.2 Action by Committee. With respect to any Participant who is then subject to Section 16 of the Exchange Act, any
function of the Administrator under the Plan relating to such Participant shall be performed solely
by the Committee, if and to the extent required to ensure the availability of an exemption under
Section 16 of the Exchange Act for any transaction relating to such Participant under the Plan.

     13.3 Compliance with Section 16. Notwithstanding any other provision of the Plan or any rule, instruction, election form or
other form, the Plan and any such rule, instruction or form shall be subject to any additional
conditions or limitations set forth in any applicable exemptive rule under Section 16 of the
Exchange Act (including any amendment to Rule 16b-3) that are requirements for the application of
such exemptive rule. To the extent permitted by applicable law, such provision, rule, instruction
or form shall be deemed amended to the extent necessary to conform to such applicable exemptive
rule.

     13.4 Committee Approval. In order to ensure compliance with all applicable laws, the Committee, in its discretion,
may require that any transactions by any Participant related to Stock must be pre-approved by the
Committee.

ARTICLE 14.

CERTAIN CORPORATE EVENTS

     In the event that the Administrator determines that any dividend or other distribution
(whether in the form of cash, Stock, other securities, or other property), recapitalization,
reclassification, stock split, reverse stock split, reorganization, merger, consolidation,
split-up, spin-off, combination, repurchase, liquidation, dissolution, or sale, transfer, exchange
or other disposition of all or substantially all of the assets of the Company, or exchange of Stock
or other securities of the Company, issuance of warrants or other rights to purchase Stock or other
securities of the Company, or other similar corporate transaction or event, in the Administrator’s
sole discretion, affects the Stock such that an adjustment is determined by the Administrator to be
appropriate in order to prevent dilution or enlargement of the benefits or potential benefits
intended to be made available under the Plan or with respect to any Account under the Plan, then
the Administrator shall, in such manner as it may deem equitable, adjust the number and/or kind of
shares of Stock (or other securities or property) credited to Participants’ Accounts.

     In the event of any transaction or event described in the preceding paragraph or any unusual
or nonrecurring transactions or events affecting the Company, any affiliate of the Company, or the
financial statements of the Company or any affiliate, or of changes in applicable laws,
regulations, or accounting principles, the Administrator, in its sole and absolute discretion and
on such terms and conditions as it deems appropriate, by action taken prior to the occurrence of
such transaction or event, is hereby

-22-

 

authorized to take any one or more of the following actions
whenever the Administrator determines that such action is appropriate in order to prevent dilution
or enlargement of the benefits or potential benefits intended to be made available under the Plan
or with respect to any Account under the Plan, to facilitate such transactions or events, or to
give effect to such changes in laws, regulations or principles:

     (a) To provide that Participants’ Stock Units and the Company’s rights and
obligations with respect thereto shall be assumed by the successor or survivor corporation,
or a parent or subsidiary thereof;

     (b) To provide that the Stock Units credited to Participants’ Accounts shall
be replaced by stock of the successor or survivor corporation, or a parent or subsidiary
thereof, with appropriate adjustments as to the number and/or kind of shares; and

     (c) To make adjustments to the number and/or kind of Stock Units (or other
securities or property) credited to Participants’ Accounts.

ARTICLE 15.

MISCELLANEOUS

     15.1 Status of Plan. The Plan is intended to be a plan that is not qualified within the meaning of Code Section
401(a) and that “is unfunded and is maintained by an employer primarily for the purpose of
providing deferred compensation for a select group of management or highly compensated employees”
within the meaning of ERISA Sections 201(2), 301(a)(3) and 401(a)(1). The Plan shall be
administered and interpreted to the extent possible in a manner consistent with that intent.

     15.2 Unsecured General Creditor. Participants and their Beneficiaries, heirs, successors and assigns shall have no legal or
equitable rights, interests or claims in any property or assets of any Employer. For purposes of
the payment of benefits under this Plan, any and all of an Employer’s assets shall be, and remain,
the general, unpledged unrestricted assets of the Employer. An Employer’s obligation under the
Plan shall be merely that of an unfunded and unsecured promise to pay money in the future.

     15.3 Employer’s Liability. An Employer’s liability for the payment of benefits shall be defined only by the Plan and
the Election Form(s), as entered into between the Employer and a Participant. An Employer shall
have no obligation to a Participant under the Plan except as expressly provided in the Plan and his
or her Election Form(s).

     15.4 Nonassignability. Neither a Participant nor any other person shall have any right to commute, sell, assign,
transfer, pledge, anticipate, mortgage or otherwise encumber, transfer, hypothecate, alienate or
convey in advance of actual receipt, the amounts, if any, payable hereunder, or any part thereof,
which are, and all rights to which are expressly declared to be, unassignable and non-transferable.
No part of the amounts payable shall, prior to actual payment, be subject to seizure, attachment,
garnishment or sequestration for the payment of any debts, judgments, alimony or separate
maintenance owed by a Participant or any other person, be transferable by operation of law in the
event of a Participant’s or any other person’s bankruptcy or insolvency or be transferable to a
spouse as a result of a property settlement or otherwise.

     15.5 Sources of Stock. If Stock is credited under the Plan in the Trust in connection with a deferral of
Restricted Stock, the shares so credited shall be deemed to have originated, and shall be counted
against the number of shares reserved under the Equity Plan under which they were granted.

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     15.6 Tax Withholding.

     (a) Annual Deferral Amounts. For each Plan Year in which an Annual
Deferral Amount is being withheld from a Participant, the Participant’s Employer(s) shall
withhold from that portion of the Participant’s Base Annual Salary and Bonus that is not
being deferred, in a manner determined by the Employer(s), the Participant’s share of FICA
and other employment taxes on such Annual Deferral Amount. If necessary, the Administrator
may reduce the Annual Deferral Amount in order to comply with this Section 15.6.

     (b) Company Matching Amounts. When a Participant becomes vested in a
portion of his or her Company Matching Account, the Participant’s Employer(s) shall withhold
from the Participant’s Base Annual Salary and/or Bonus that is not deferred, in a manner
determined by the Employer(s), the Participant’s share of FICA and other employment taxes.
If necessary, the Administrator may reduce the vested portion of the Participant’s Company
Matching Account in order to comply with this Section 15.6.

     (c) Restricted Stock Amounts. For each Plan Year in which a
Restricted Stock Amount is being first credited to a Participant’s Account Balance, or at
the time any dividends are credited to the Participant’s Accounts, the Participant’s
Employer(s) shall withhold from that portion of the Participant’s Base Annual Salary, Bonus
and Restricted Stock that is not being deferred, in a manner determined by the Employer(s),
the Participant’s share of FICA and other employment taxes on such Restricted Stock Amount.
If necessary, the Administrator may reduce the Restricted Stock Amount in order to comply
with this Section 15.6.

     (d) Distributions. The Participant’s Employer(s), or the trustee of
the Trust, shall withhold from any payments made to a Participant under this Plan all
federal, state and local income, employment and other taxes required to be withheld by the
Employer(s), or the trustee of the Trust, in connection with such payments, in amounts and
in a manner to be determined in the sole discretion of the Employer(s) and the trustee of
the Trust.

     (e) Participant May Satisfy Tax Obligations in Cash. The Administrator, in its
sole discretion, may allow a Participant to pay to his or her Employer, in cash, any amounts
required to be withheld by the Employer in connection with the Plan in lieu of having such
amounts withheld from his or her deferrals or distributions.

     15.7 Coordination with Other Benefits. The benefits provided for a Participant and Participant’s Beneficiary under the Plan are in
addition to any other benefits available to such Participant under any other plan or program for
employees of the Participant’s Employer. The Plan shall supplement and shall not supersede, modify
or amend any other such plan or program except as may otherwise be expressly provided.

     15.8 Compliance. A Participant shall have no right to receive payment with respect to the Participant’s
Account Balance until all legal and contractual obligations of the Employers relating to
establishment of the Plan and the making of such payments shall have been complied with in full.
In addition, the Company shall impose such restrictions on Stock delivered to a Participant
hereunder and any other interest constituting a security as it may deem advisable in order to
comply with the Securities Act, the requirements of the New York Stock Exchange or any other stock
exchange or automated quotation system upon which the Stock is then listed or quoted, any state
securities laws applicable to such a transfer, any provision of the Company’s Articles of
Incorporation or Bylaws, or any other applicable law or applicable regulation.

     15.9 Not a Contract of Employment. The terms and conditions of this Plan shall not be deemed to constitute a contract of
employment between any Employer and the Participant. Such employment is hereby acknowledged to be
an “at will” employment relationship that can be terminated at

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any time for any reason, or no
reason, with or without cause, and with or without notice, unless expressly provided in a written
employment agreement. Nothing in this Plan shall be deemed to give a Participant the right to be
retained in the service of any Employer, either as an Employee or a Director, or to interfere with
the right of any Employer to discipline or discharge the Participant at any time.

     15.10 Furnishing Information. A Participant or his or her Beneficiary will cooperate with the Administrator by furnishing
any and all information requested by the Administrator and take such other actions as may be
requested in order to facilitate the administration of the Plan and the payments of benefits
hereunder, including but not limited to taking such physical examinations as the Administrator may
deem necessary.

     15.11 Governing Law. Subject to ERISA, the provisions of this Plan shall be construed and interpreted according
to the internal laws of the State of California without regard to its conflicts of laws principles.

     15.12 Notice. Any notice or filing required or permitted to be given to the Administrator under this Plan
shall be sufficient if in writing and hand-delivered, or sent by registered or certified mail, to
the address below:

General Counsel

AMB Property Corporation

Pier 1, Bay 1

San Francisco, California 94111

     Such notice shall be deemed given as of the date of delivery or, if delivery is made by mail,
as of the date shown on the postmark on the receipt for registration or certification.

     Any notice or filing required or permitted to be given to a Participant under this Plan shall
be sufficient if in writing and hand-delivered, or sent by mail, to the last known address of the
Participant.

     15.13 Successors. The provisions of this Plan shall bind and inure to the benefit of the Participant’s
Employer and its successors and assigns and the Participant and the Participant’s designated
Beneficiaries.

     15.14 Spouse’s Interest. The interest in the benefits hereunder of a spouse of a Participant who has predeceased the
Participant shall automatically pass to the Participant and shall not be transferable by such
spouse in any manner, including but not limited to such spouse’s will, nor shall such interest pass
under the laws of intestate succession.

     15.15 Validity. In case any provision of this Plan shall be illegal or invalid for any reason, said
illegality or invalidity shall not affect the remaining parts hereof, but this Plan shall be
construed and enforced as if such illegal or invalid provision had never been inserted herein.

     15.16 Incompetent. If the Administrator determines in its discretion that a benefit under this Plan is to be
paid to a minor, a person declared incompetent or to a person incapable of handling the disposition
of that person’s property, the Administrator may direct payment of such benefit to the guardian,
legal representative or person having the care and custody of such minor, incompetent or incapable
person. The Administrator may require proof of minority, incompetence, incapacity or guardianship,
as it may deem appropriate prior to distribution of the benefit. Any payment of a benefit shall be
a payment for the account of the Participant and the Participant’s Beneficiary, as the case may be,
and shall be a complete discharge of any liability under the Plan for such payment amount.

     15.17 Court Order. The Administrator is authorized to make any payments directed by court order in any action
in which the Plan or the Administrator has been named as a party. In addition, if a

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court determines that a spouse or former spouse of a Participant has an interest in the Participant’s
benefits under the Plan in connection with a property settlement or otherwise, the Administrator,
in its sole discretion, shall have the right, notwithstanding any election made by a Participant,
to immediately distribute the spouse’s or former spouse’s interest in the Participant’s benefits
under the Plan to that spouse or former spouse.

     15.18 Automatic Rescission, Trust Distributions and Plan Interpretation.

     (a) Automatic Rescission. If, for any reason, all or any portion of
a Participant’s benefits under this Plan becomes subject to a penalty tax amount under
Section 409A and the proposed and final Department of Treasury rules, regulations and other
guidance promulgated thereunder, the election associated with such benefits shall
automatically be rescinded and be considered void and of no effect. Such benefits shall be
distributed to the Participant as soon as administratively feasible.

     (b) Trust Distributions. If the Trust terminates in accordance with
the provisions of the Trust and benefits are distributed from the Trust to a Participant in
accordance with such provisions, the Participant’s benefits under this Plan shall be reduced
to the extent of such distributions.

     (c) Plan Interpretation. The Plan shall be interpreted, construed,
administered and operated in good faith in a manner that satisfies the requirements of
Section 409A of the Code, Internal Revenue Service Notice 2005-1 and the final and proposed
Department of Treasury rules, regulations and other guidance promulgated thereunder. In the
event that any provision of this Plan is inconsistent with Section 409A of the Code or such
rules, regulations and other guidance, then the applicable provisions of Section 409A of the
Code shall supersede such provision. Nothing in this Plan shall be construed as an
entitlement to or guarantee of any particular tax treatment to a Participant.

     15.19 Insurance. The Employers, on their own behalf or on behalf of the trustee of the Trust, and, in their
sole discretion, may apply for and procure insurance on the life of the Participant, in such
amounts and in such forms as the Trust may choose. The Employers or the trustee of the Trust, as
the case may be, shall be the sole owner and beneficiary of any such insurance. The Participant
shall have no interest whatsoever in any such policy or policies, and at the request of the
Employers shall submit to medical examinations and supply such information and execute such
documents as may be required by the insurance company or companies to whom the Employers have
applied for insurance.

     15.20 Status of Company as a REIT. Notwithstanding any provision of this Plan or any Participant’s election to the contrary,
the Partnership, the Company and the Administrator shall have the right at any time, and from time
to time, to amend this Plan or to take any other action which it or they deem to be necessary or
appropriate in order to avoid or cure any impairment of the Company’s status as a real estate
investment trust under Sections 856 et. seq. of the Code or to avoid or cure any violation of the
Company’s Articles of Incorporation.

-26-

 

     IN WITNESS WHEREOF, the Company and the Partnership have signed this Plan document as of
October 2, 2006.

	 	 	 	 	 
	 	AMB Property Corporation, a Maryland corporation

 	 
	 	By:  	/s/ Michael A. Coke
 	 
	 	 	Title: Executive Vice President, Chief Financial 	 
	 	 	Officer 	 
	 

	 	 	 	 	 
	 	AMB Property, L.P.,

a Delaware limited partnership

 	 
	 	By:  	AMB Property Corporation,
 	 
	 	 	a Maryland Corporation, its general partner 	 

	 	 	 	 	 
	 	By:  	 /s/ Michael A. Coke
 	 
	 	 	Title: Executive Vice President, Chief Financial 	 
	 	 	Officer 	 
	 

-27-

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